Question 3 (29 marks) This is a presentation. Use PowerPoint to portray your responses This is an integration of class learning with the real world trading practice. The presentation will be based on the strategies and trading activities that you will engage in futures and options at different exchanges. Assume that today is Feb 1, 2020 and you have been given C$ 5,000,000 fake money to trade till 20th April, 2020. In addition, you will be expected to apply your knowledge and wisdom in the investment world. Assume that you have C$ 5,000,000 fake money with access to all listed stocks, bonds, futures and options worldwide. You can trade in options and futures, in combination with the underlying asset. The objective of this exercise is to get familiar with different contracts offered by major exchanges. During this period, you will use fake money to perform the following trades and execute at least 12 strategies (more the better as long as it fits your portfolio strategy). 1. Speculative trade: identify an underlying and make a speculative trade; 2. Arbitrage trade: arbitrage opportunity does not normally exist. If you discover one during this period, please implement the correct arbitrage strategy and show the arbitrage profit; 3. Hedging trade: identify and invest in an underlying and carry out the hedge with futures contracts, 4. Try different option trading strategies discussed in class. The objective is to integrate class learning with the real world trading and risk management practice. Describe each trade and provide the reason for such a trade. What are the important lessons you learn from this valuable trading experience? The main report should provide tables and/or graphs. Question 3 (29 marks) This is a presentation. Use PowerPoint to portray your responses This is an integration of class learning with the real world trading practice. The presentation will be based on the strategies and trading activities that you will engage in futures and options at different exchanges. Assume that today is Feb 1, 2020 and you have been given C$ 5,000,000 fake money to trade till 20th April, 2020. In addition, you will be expected to apply your knowledge and wisdom in the investment world. Assume that you have C$ 5,000,000 fake money with access to all listed stocks, bonds, futures and options worldwide. You can trade in options and futures, in combination with the underlying asset. The objective of this exercise is to get familiar with different contracts offered by major exchanges. During this period, you will use fake money to perform the following trades and execute at least 12 strategies (more the better as long as it fits your portfolio strategy). 1. Speculative trade: identify an underlying and make a speculative trade; 2. Arbitrage trade: arbitrage opportunity does not normally exist. If you discover one during this period, please implement the correct arbitrage strategy and show the arbitrage profit; 3. Hedging trade: identify and invest in an underlying and carry out the hedge with futures contracts, 4. Try different option trading strategies discussed in class. The objective is to integrate class learning with the real world trading and risk management practice. Describe each trade and provide the reason for such a trade. What are the important lessons you learn from this valuable trading experience? The main report should provide tables and/or graphs
