Question
Part A: Select 2 stocks that you think might be good investments. Research them a bit using some of the information I included in the
Part A: Select 2 stocks that you think might be good investments.
Research them a bit using some of the information I included in the MUP -- which I converted to a Freemind file -- see Announcement about Freemind.
Derive a Probability Distribution for each of the stocks using the Probability Tab of a Comparion model
For each of the 2 stocks, do a Monte Carlo Simulation and compare the Long-Term results (expected or average or mean annualized return) and the Short-Term (likelihood of losing more than 10% OR the likelihood of losing more than 0% (Your Choice) for 3 options expiring the third Friday of October, at the following strike prices
one 5 % to 10% below the current price,
one at or very close to the current price and
one 5% to 10% above the current price, each expiring on the third Friday of October.
Create a separate Excel file for each of the 2 stocks, each with tabs for each of the three strike prices.
Create a PowerPoint showing a comparison of the results (Long and Short Term) for these options to one another.
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