1. In general, what is an option and what differentiate it from other types of financial

securities? What are some examples of options commonly encountered in the world of

investment and finance?

2. Can these options of selected stock of galaxy dividend income growth fund be valued using conventional discounted cash flow techniques? Why not?

3. Suppose the galaxy Dividend income growth fund already owns JP Morgan, Facebook

stock and receives a report casting doubt on the company's near-term performance. How

might it use options to protect itself from price declines over the next few months?

Examine the protective-put position

Examine the covered-call position

Each of these strategies offers us different types of protection. How should we choose

between them?

4. It is sometimes said that equity itself is like a call option on the firm. In what sense is this

true? Can real investment opportunities be valued as options?

5. Develop the hybrid option strategy that can be adopted by galaxy dividend income growth funds based on the spread and combination and use all the selected stocks?