Part A.

1. Select a company then, estimate the stocks intrinsic value using your own assumptions. Show your computations. Briefly explain your inputs and logic.

2. Determine a Price Target 1 year from now and 5 years from now using Relative Value Ratios. Show your computations. Briefly explain your inputs and logic.

3. Recommend an option hedging strategy based on your 1 year price target. Assume you own 1000 shares of the stock at the current market price. Select either a covered call strategy or a protective put strategy. Calculate the expected outcome in 1 year assuming the stock attains your 1 year price target.

4. Recommend a Bull Call Spread or Bear Call Spread. Assume that you expect the stock to achieve your 1 year price target. Calculate the expected outcome in 1 year assuming the stock attains your 1 year price target. Use 100 contracts for your option quantities.

Part B.

You want to retire in 40 years and realize that you must start planning now. You decide that it is time to prepare an analysis about YOU. Answer the following questions based on what you have learned. Think critically and intellectually challenge yourself. Demonstrate your investment knowledge.

1. What approach and strategy will you use to advise yourself?

2. What is your specific suitability profile?

3. What is your investment plan for retirement?

4. What will be your asset allocation and what is your expected annual return throughout your life for each allocation?