Discuss the high risk nature of investing

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Reference no: EM13874275

PART 1

A. Briefly explain why "put" options work as natural opposites to "call" options

B. Determine if leverage plays any significant role in the use of stock options and if so, does whether it appeals only to the speculator

C. Explain why these options commonly referred to as "wasting assets."

D. Discuss how time management plays a role in the use of a short-term call option and the purchase of a LEAP

PART 2

1. Discuss how all "open" positions at a tax year's end are treated

2. Briefly explain what role a "commodity pool" might play as a viable alternative to a commodity futures investment

3. Discuss the high risk nature of investing in these type contracts and determine what role margin plays in the "riskiness" of such investments

PART 3

1. Distinguish between "no-load," "back-load," and "12b-1" fees

2. Explain the importance of a mutual fund's historical performance and some key points to consider when utilizing this information

3. Discuss the importance in distinguishing between diversified and non-diversified funds in an investment portfolio, as well as how this will affect its risk profile

4. List some of the different sources you can research for information on mutual funds and fund investing

Reference no: EM13874275

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