Question
What are the intrinsic and extrinsic factors that can impact price? This is what the assignment lay out is. However, I cannot figure out what
What are the intrinsic and extrinsic factors that can impact price?
This is what the assignment lay out is. However, I cannot figure out what the professor is actually looking for when it comes to the price impact (spreadsheet appendix).
Overview: For this first milestone, due in Module Five, you will discuss the potential risks and benefits associated with each of the derivative instruments that you are recommending to address the needs of the problem within the case study scenarioincluding how these risks and benefits can have an impact on the company's return. You will examine the external and internal factors (and the potential impact of these factors) that the company will need to consider in its investment decisions. In addition, you will also calculate the potential price impact of the derivative instruments that you are recommending. These calculations will be included in an Excel spreadsheet, which will serve as an appendix to your final portfolio proposal. Prompt: First, review the case that you have chosen for your final project, as well as the accompanying spreadsheet for the case, a address the following critical elements:
II. Risks and Benefits A. Discuss potential risks and benefits associated with each instrument and how those risks could have an impact on return. B. Assess the impacts of multiple extrinsic and intrinsic factors that the company will want to consider based on how they influence value and price.
III. Price Impact (Spreadsheet Appendix) A. Calculate the potential price impact of extrinsic and intrinsic factors, and expected mitigated risk value of recommended derivative instruments. Present this information in your spreadsheet, and include it as an appendix.
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