You are a portfolio manager who uses options positions to customize the risk profile of your clients.
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You are a portfolio manager who uses options positions to customize the risk profile of your clients. In each case, what strategy is best given your client’s objective?
a. • Performance to date: Up 16%.
• Client objective: Earn at least 15%.
• Your forecast: Good chance of major market movements, either up or down, between now and end of the year.
i. Long straddle ii. Long bullish spread iii. Short straddle
b. • Performance to date: Up 16%.
• Client objective: Earn at least 15%.
• Your forecast: Good chance of a major market decline between now and end of year.
i. Long put options ii. Short call options iii. Long call options? P-639
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Related Book For
ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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