Reference no: EM133275451
DISCUSSION:
1. Strategy 1: Bullish, choose one publicly traded company and buy 1 call contract on that stock (Strike price = closest to its market price, expiration = December 22 or January or February 23). Post the price of the call for strategy 1 on the DB as soon as you purchase the call. Also, post your total costs. (You can use hypothetical buy using Yahoo/finance or Nasdaq.com option prices)
2. Strategy 2: Bullish, choose the same company of question 1 and sell 1 put contract on that stock (Strike price= closest to its market price, expiration December 22 or January or February 23). Post the price of this strategy on the DB ASA you sell the put. Also, post your total credits for selling (Writing the put). (You can use hypothetical sell using Yahoo/finance or Nasdaq.com prices)
3. Strategy 3: Bullish Synthetic long stock, choose the same company above, and criate a synthetic long stock using options on that stock. Explain your purchase or sale and estimate the total cost of this strategy. (You can use hypothetical buy using Yahoo/finance or Nasdaq.com option prices)
4. Strategy 4: Bearish Synthetic short stock, choose the same company above, and create a synthetic short stock using options on that stock. Explain your purchase or sale and estimate the total cost of this strategy. (You can use hypothetical buy using Yahoo/finance or Nasdaq.com option prices)
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