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*Need step by step instruction how to input information in the scatter plot on excel* Question 1 [Stock Option Strategy, 8 Points]: A collar is
*Need step by step instruction how to input information in the scatter plot on excel*
Question 1 [Stock Option Strategy, 8 Points]: A collar is an options strategy that brackets the value of a portfolio between two bounds. Suppose that an investor currently is holding a long position in Disney stock, which is currently selling at about S100 per share. A lower bound of S90 can be placed on the value of the portfolio by buying a protective put with strike price S90. This protection, however, requires that the investor pay the put premium. To raise the money to pay for the put, the investor might write a call option, say, with strike price S110. The call might sell for roughly the same price as the put, meaning that the net outlay for the two options positions is approximately zero. In short, you have to sell a call option to raise money (collecting the premium) in order to buy a put option to hedge financial ris.k To execute a collar strategy, you buy a put option: Stock Name Disney: PUT Strike Price $90 Premium EXP $1.4 Jan, 2019 And at the same time you sell a call option: Strike Price $110 Stock Name Premium $1.35 EXP Disney: CALL Jan, 2019 Assume that the latest stock price of Disney is $98.6. Graph the net profit diagram using Microsoft Excel for the collar strategy outlined above. You may use class demonstrations and sample Excel files uploaded on Blackboard for reference. You need do the following in order to obtain full credits: 1, 16 Points! Graph the net profit diagram using Microsoft Excel for the collar strategy outlined above. Copy and paste the scatter plot from Excel to the word file answer sheet. 12 Pointsl Write down your brief comments on the collar strategy 2. Question 1 [Stock Option Strategy, 8 Points]: A collar is an options strategy that brackets the value of a portfolio between two bounds. Suppose that an investor currently is holding a long position in Disney stock, which is currently selling at about S100 per share. A lower bound of S90 can be placed on the value of the portfolio by buying a protective put with strike price S90. This protection, however, requires that the investor pay the put premium. To raise the money to pay for the put, the investor might write a call option, say, with strike price S110. The call might sell for roughly the same price as the put, meaning that the net outlay for the two options positions is approximately zero. In short, you have to sell a call option to raise money (collecting the premium) in order to buy a put option to hedge financial ris.k To execute a collar strategy, you buy a put option: Stock Name Disney: PUT Strike Price $90 Premium EXP $1.4 Jan, 2019 And at the same time you sell a call option: Strike Price $110 Stock Name Premium $1.35 EXP Disney: CALL Jan, 2019 Assume that the latest stock price of Disney is $98.6. Graph the net profit diagram using Microsoft Excel for the collar strategy outlined above. You may use class demonstrations and sample Excel files uploaded on Blackboard for reference. You need do the following in order to obtain full credits: 1, 16 Points! Graph the net profit diagram using Microsoft Excel for the collar strategy outlined above. Copy and paste the scatter plot from Excel to the word file answer sheet. 12 Pointsl Write down your brief comments on the collar strategy 2Step by Step Solution
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