Use the following for #1-5:

Use Yahoo! Finance to download the monthly stock prices for Netflix (NFLX) from January 2012 until January 2015 (36 return observations). (Hint: You just need the Date and Adj Close prices column from here).

Use excel to answer the following questions:

1. What is the Holding Period Return (HPR)?

What is the Geometric Average Return (GAR)?

(hint: GAR= [[(1+R1)(1+R2++(1+Rn)]^(1/n)] 1)

What is the Arithmetic Average Return (AAR)?

What is the Standard Deviation of the monthly return (SD)?

2. What are the annualized values for each of these?:

Annualized GAR: (hint: [(1+GAR)^(1/12)] 1)

Annualized AAR:

Annualized SD:

3-4. Copy and paste the following Netflix quote in excel, then answer the following questions about your quote:

Netflix, Inc. (NFLX)

-NasdaqGS

Watchlist

100.04

2.72(2.79%) Oct 23, 4:00PM EDT

After Hours : 100.00

0.04 (0.04%) Oct 23, 7:59PM EDT

Prev Close:

97.32

Open:

97.66

Bid:

99.86 x 500

Ask:

100.02 x 300

1y Target Est:

123.05

Beta:

1.27689

Earnings Date:

Jan 18 - Jan 22 (Est.)

Day's Range:

97.27 - 101.56

52wk Range:

45.08 - 129.29

Volume:

18,019,886

Avg Vol (3m):

21,808,400

Market Cap:

42.76B

P/E (ttm):

266.06

EPS (ttm):

0.38

Div & Yield:

N/A (N/A)

3b. How much is the spread in your quote?

3c. How much is the depth on the limit order book in your quote?

3d. How many shares were traded during the day of your quote?

4a. What is the total value of all common stock for this firm? (Hint: Market Capital)

4b. What stock exchange is Netflix listed on?

4c. Calculate the daily return for Netflix for the day of your quote?

5-6. The quote for a call option on Netflix with a strike price of $120.00 and an expiration date of November 20^th, 2015 are given below:

5a. Copy and paste the Netflix option quote in excel and then answer the following questions.

5b. What was the price of the last trade for this option?

5c. What is the intrinsic value of this option? [Hint: max(S X, 0)]

5d. Is this option in-the-money or out-of-the-money?

5e. What is the daily return for this option?

6a. What is the spread for this option?

6b. How many contracts are available for this strike price and this expiration date?

6c. How many contracts have been traded today for this strike price and this expiration date?

7. On Yahoo! Finance find the quote for the US dollar Japanese Yen exchange rate (USD/JPY). Copy and paste it in excel and answer the following questions.

7a. Indicate the current USD/JPY exchange rate:

7b. Using Yahoo!s interactive charts, find out the exchange rate 1 year ago.

7c. Based on this, compute the 1-year US dollar return.