Question
In this assignment you have been given the price movement of a company for a period of three months. Based on the price movements you
In this assignment you have been given the price movement of a company for a period of three months. Based on the price movements you are going to forecast what could be the price at the end of the fourth month. Depending on your forecast you will form one option strategy for each company. The available strike prices and their respective premiums are given for each company. An excel will be provided where you have to mention the strategy, the strike prices chosen for the strategy, the maximum profit potential and the max loss potential for the strategy.
After the due date of the assignment the actual price of each company at the end of 4th month will be provided and you should calculate the actual profit or loss realised in the strategy that you have formed. The profit or loss should be updated in the google sheet provided which will be peer verified. For each company you will be ranked based on the profit or loss that you have made. Top 20% will be awarded 5 marks and the bottom 20% will be award one mark. So you will be graded for a total of 25 marks which will be converted to 10 marks of your internal component.
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