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Question # 1 : Let's assume that you expect the financial markets to go up next week. How would you make money using options? Please
Question #:
Let's assume that you expect the financial markets to go up next week.
How would you make money using options?
Please provide an example using your chosen stock. If your chosen stock
does not have options or too few please chose another company.Would you use a call or a put option?
points Would you buy or write the option?
points What would be your preferred strike price? Why?
points How much would it cost you?
points If the stock price doubles next week, how much profit
roughly would you expect to make?
Question #:
Let's assume that you expect the financial markets to go down next week.
How would you make money using options?
Please provide an example using your chosen stock. If your chosen stock
does not have options or too few please chose another company.
points Would you use a call or a put option?
points Would you buy or write the option?
points What would be your preferred strike price? Why?
points How much would it cost you?
points If the stock price halves next week, how much profit
roughly would you expect to make?
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