Question
Strategy 1: Bullish, choose one publicly traded company and buy 1 call contract on that stock (Strike price = closest to its market price, expiration
Strategy 1: Bullish, choose one publicly traded company and buy 1 call contract on that stock (Strike price = closest to its market price, expiration = December 22 or January or February 23). Post the price of the call for strategy 1 on the DB as soon as you purchase the call. Also, post your total costs. (You can use hypothetical buy using Yahoo/finance or Nasdaq.com option prices)
Strategy 2: Bullish, choose the same company of question 1 and sell 1 put contract on that stock (Strike price= closest to its market price, expiration December 22 or January or February 23). Post the price of this strategy on the DB ASA you sell the put. Also, post your total credits for selling (Writing the put).
Strategy 3: Bullish Synthetic long stock, choose the same company and criate a synthetic long stock using options on that stock.
Explain your purchase or sale and estimate the total cost of this strategy.
Strategy 4: Bearish Synthetic short stock, choose the same company and create a synthetic short stock using options on that stock.
Explain your purchase or sale and estimate the total cost of this strategy.
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Strategy 1 Buying a call option contract is a bullish strategy A call option gives the holder the right but not the obligation to buy the underlying s...Get Instant Access to Expert-Tailored Solutions
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