HW, Risk Management

Assignment Help:
From CMEGROUP website – Look up / Report a FUTURES closing price over 3 consecutive days, and determine your $$ Profit or Loss each of the 2 in-between days. Assume you are SHORT one contract. You must list the contract specifications.

• From CBOE website or YAHOO FINANCE, Look up / Report one OPTION Put or Call price. Pick a well known stock that pays little or no dividend. The strike price should be near the current stock price. The expiration date should be between 2 and 4 months. All these details / dates / stock price should be reported. Assume you buy that option contract (for 100 shares) at the end of “day 1” and sell it at the end of “day 2. ” Report those 2 closing prices and your total $ profit of loss.
ALSO, use a Black-Scholes-Merton Options Calculator to determine the theoretical option price for the same “day 1” option. Specify all your inputs. The Volatility Input (the stock return standard deviation) will be the trickiest parameter. You will have to search it. Report / Note the comparison between the actual price at the end of “day 1” and theoretical option price you found.

Related Discussions:- HW

Explain extension and contraction risk, Question 1 (a)  Prepayment r...

Question 1 (a)  Prepayment refers to paying principal on a security before the due date. Prepayment risk is the risk associated with the early unscheduled return of principal

LIability risk, Michael went deer hunting with Ed. After seeing bushes move...

Michael went deer hunting with Ed. After seeing bushes move, Michael quickly fired his rifle at what he thought was a deer. However, Ed caused the move- ment in the bushes and was

What is the straight value of the convertible bond, The current stock price...

The current stock price of IOU is $250 and has a standard deviation of 35% per year. The risk-free interest rate is 5% per year compounded continuously. Find the prices of a call a

Draw the risk management control cycle, Question 1: Define the followin...

Question 1: Define the following terms: (a) Whole life assurance (b) Immediate annuity (c) Market Liquidity Risk (d) With-pro

Measure of market risk, Question: DGI Investors is responsible for man...

Question: DGI Investors is responsible for managing the investment portfolio of Carnegie University Trust which has a market value of $ 100m. The new appointed chairman of t

GRACH, (i) Calculate the unweighted average daily variance for the time ser...

(i) Calculate the unweighted average daily variance for the time series. Explain any assumptions or simplifications you have made, and the working for each step.

firms risk management strategies-tactics , 1. You are to analyze:  [1] in...

1. You are to analyze:  [1] internal financial options offered to employees as a benefit, [2] the external financial options that are offered by markets to outside investors who ma

coon position is quite substantial part, A former alumna of the University...

A former alumna of the University, who originated Racoon.com ((ticker: COON1), recently passed away. In her Will, she named X-University as the beneficiary of her assets, which was

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd