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What is the answer to this problem? You can visit this page for help http://www.option-price.com/index.php Step 5 - Hedging with Options PROJECT STEP 5 using

What is the answer to this problem? You can visit this page for help http://www.option-price.com/index.php

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Step 5 - Hedging with Options PROJECT STEP 5 using Options to hedge - 400pts a. using exchange prices or excel, your calculator or web based pricing engines, price a vanilla option to hedge the corporate exposure, as of the date and underlying (spot) price that you entered into at the previous step. To check your work, find an option pricing model on the internet and check your work. If you run out of options (pun intended) try this: http://www.option-price.com/index.php b. Create a table of profit and loss at expiration for the underlying position c- a column of the profit and loss for the option c. Generate a graph of the profit or loss from this position.

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