Reference no: EM132971301

Question - A wealthy UK investor has a well-diversified portfolio of UK equities (60%), international equities (20%), UK government bonds (10%), and cash deposits (10%) and the portfolio is currently worth £5 million. He has been tracking the level of the FTSE100 index for some time and believes that the FTSE100 index is unlikely to be above 7400 or below 6400 by the end of April 2021. Assume this investor has asked for your advice with regard to the use of FTSE100 futures and/or options strategies that will make a profit should his view of the market be correct. You should be aware, however, that although your client is a high net worth individual, he absolutely hates losing money. Any strategies you suggest, therefore, must not lose more than £200,000 under any circumstances.

Collect relevant end-of-day FTSE 100 index prices between a time point before mid-August 2020 and on-going as relevant, stating the date obtained. Research and report the performance of the UK stock market, with extra marks awarded for good quantitative analysis provided.