Question
Select a company that is not well known to the general public (i.e. not Apple, Walmart, or Nike)and give a summary of the company. Your
Select a company that is not well known to the general public (i.e. not Apple, Walmart, or Nike)and give a summary of the company. Your chosen company can not be in any of the major indexes (S&P, Nasdaq, or Dow). Tell us what they do and how they make money (become profitable). Include their country of origin.
2) What sector and industry are they in?
3) What is their capitalization (market price and shares outstanding)?
4) What did they report for profits over the last 4 quarters and what is their historical performance each quarter (percent)?
5) What is their profit margin based on operating income and net income?
6) Who is one of their competitors and what is their performance?
7) Explain how your company is performing compared to its competitor (give 5 examples to validate your analysis).
Explain the purpose of options markets.
2) List the major terms of an option contract and give a brief description of their meaning.
3) Describe the Greeks and their purpose when trading options.
4) Define implied volatility and it relationship to trading.
5) Explain the differences between historical and implied volatility. Include the strengths and weaknesses of each.
6) Describe the concept of put-parity and how it is related to volatility.
7) Discuss how implied volatility may be used to estimate price movement. Be certain to give the equation used and its meaning.
8) State how to calculate single day implied volatility. In addition, give the equation and its logic.
9) Describe the components of the VIX.
10) Explain the implications of a rising or falling VIX index.
11) State how to calculate expected 30-day market movements. In addition, give the equation and its logic.
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