Question
You will be harvesting your own options chain from BarChart.com (Links to an external site.) . All strategies need to use Activision Blizzard, Inc. (ticker:
You will be harvesting your own options chain from BarChart.com (Links to an external site.) . All strategies need to use Activision Blizzard, Inc. (ticker: ATVI) as the underlying security. If for some reason, this website is not loading prices for you, then you are welcome to use another site. One alternative option is Big Charts (Links to an external site.), but there are many options chain vendors online. Ultimately, I want to see a screen snip of the options chain used for every options strategy below. If I cannot verify your math, then it is wrong. Use a strike month that is 2-3 months in the future. At the very top of your paper, I want to see two things: (1) the current price of ATVI at the time that you captured the options chain; and (2) a screen snip of the entire options chain (example below from a different company). I want to see you discuss each strategy using a table that looks like what I showed you in the textbook and for each strategy in the lesson. All formulas should be shown in this table for alloptions strategies in this paper. This is so that I can see exactly how you derived your numbers. If I need to hunt for your math and it looks like it might be wrong, then it will be marked wrong...show me how you calculated each and every value. Everything within the table should be in contract-level terms (i.e. $15.75 not $1,575), not total-dollar terms. You need to add a cell for "Net Premium PAID" to each table for the combination strategies (i.e., long straddle, bull call spread, and the collar).
- each one should have the matrix shown above and in the textbook.
- Every section should include all formulas shown and the answers clearly indicated
- you need to tell me why an investor would use the given strategy.
Construct a collar strategy.
Your put option should be 2-3 strikes below the current market price, and your call should be 2-3 strikes above the current market price. Ideally, the protection window should not be more than $20. Remember that this is a married strategy. See the discussion in the textbook if you are unsure about this. Calculate the net premium, the break-even point, the max profit, and the max loss for the strategy. Each of these four items must be clearly displayed.
apple inc.
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