hedging

Compute your gain or loss on the combined position if the stock price increases 20% and decreases 20% at the time of expiry.

Unit 7 Discussion Topic 2 Topic 2: Hedging Hedging is arguably the most important function of an options trader. The ability to limit the amount of risk a portfolio is subjected to is a vital function. You are going to explore one method of hedging risks: protective puts. Before starting this assignment, you might want […]

Analyze how investors can make (or lose) money from put and call options by creating exposure and hedging it with those tools (quantify).

Unit 7 Assignment For this assignment, you will be discussing the bond environment. You will identify techniques, characteristics, and the motivations involved in hedging. If you participate in the Assignment Discussion Board, summarize your findings in your paper. Submit a minimum 2-page research paper that addresses all the items in the Checklist. Checklist Explain the […]

Describe the various equity mutual funds available to investors and the main differences within the various types of equity mutual funds.

The students are required to perform: 4 Essay questions:Question 1: Alternative funds assets under management have been growing during the last 30 years and are now one of the main forces within the stock markets. Explain the main differences between an alternative fund and a long only fund (equity fund only). Question 2: Explain in […]

Open a trading account with investopedia.

This will be an individual project. Each student is asked to open a trading account with investopedia. The account will be used to trade mostly in options and implement as many as possible of the strategies and techniques discussed in class. This should provide a real-world experience of how options are used in practice and […]

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