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Q 3 . The investor decides to purchase a put option for AutoCo shares. The option has a strike price of $ 8 0 and

Q3. The investor decides to purchase a put option for AutoCo shares. The option has a strike price of $80 and expires in two months. The cost (premium) to buy one put option contract is $3.
Discuss the possible outcomes by drawing a graph. Indicate prices associated with loss, break-even, and profit.
Q4. Explain what interest rate swap is. When and how do we use it? what is cross-currency swap? How it works? Explain.
Q5. What is cyclical industries? How should we invest with cyclical industry stocks?
Q6. What is defensive industries? Give examples for when should we invest in those sectors?
Q7. Which sectors we should buy during the expansionary period of the economy?
Q8. Which sectors should we buy during the contractionary period of the economy?
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