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Please let me know if you can assist! From Yahoo.com, obtain GOOG's call and option price as of the close of the 8h week of
Please let me know if you can assist!
From Yahoo.com, obtain GOOG's call and option price as of the close of the 8h week of class for the third-month expiry contracts. That is, if we are in November, then choose the February-expiry contract. [In Yahoo - Finance, type in GOOG, you will see data on GOOG. On the left of the screen, you will see a link for options and you can see the entire list of options. Please note that if you don't download the prices by the next day, you will not be able to get the prices from Yahoo.com.] a) Assume you already own the stock. You decide to buy a protective put. Write the profits (or value) using notations used in class (X, ST, Pp, Pc) under appropriate stock price regimes. An example is given below Buy Put @ 430 Stock Value 430 430 - ST -8 422 430 ST-8 Choose the option whose exercise price is just below 5% off the current price. Graph your portfolio value as a function of ST. What is the lowest value your portfolio could fall to? What is the maximum and minimum portfolio value that your portfolio could reach? b) Assume you already own the stock. You decide to write a covered call. Write the profits using notations used in class (X, ST, Pp, Pc) under appropriate stock price regimes. Choose the option whose exercise price is just above 5% off the current price. Graph your portfolio value as a function of ST. What is the maximum and minimum portfolio value that your portfolio could reach? From Yahoo.com, obtain GOOG's call and option price as of the close of the 8h week of class for the third-month expiry contracts. That is, if we are in November, then choose the February-expiry contract. [In Yahoo - Finance, type in GOOG, you will see data on GOOG. On the left of the screen, you will see a link for options and you can see the entire list of options. Please note that if you don't download the prices by the next day, you will not be able to get the prices from Yahoo.com.] a) Assume you already own the stock. You decide to buy a protective put. Write the profits (or value) using notations used in class (X, ST, Pp, Pc) under appropriate stock price regimes. An example is given below Buy Put @ 430 Stock Value 430 430 - ST -8 422 430 ST-8 Choose the option whose exercise price is just below 5% off the current price. Graph your portfolio value as a function of ST. What is the lowest value your portfolio could fall to? What is the maximum and minimum portfolio value that your portfolio could reach? b) Assume you already own the stock. You decide to write a covered call. Write the profits using notations used in class (X, ST, Pp, Pc) under appropriate stock price regimes. Choose the option whose exercise price is just above 5% off the current price. Graph your portfolio value as a function of ST. What is the maximum and minimum portfolio value that your portfolio could reach
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