Calculate and compare the risk (betas) of the following investments (a) A share of Apple stock (b) A one year call option on Apple (c) A one year put option (d) A portfolio consisting of a share of Apple stock and a one year put option (e) A portfolio consisting of a share of Apple stock, a one yea...

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Calculate and compare the risk (betas) of the following investments: (a) A share of Apple stock; (b)

Question:

Calculate and compare the risk (betas) of the following investments:
(a) A share of Apple stock;
(b) A one-year call option on Apple;
(c) A one-year put option;
(d) A consisting of a share of Apple stock and a one-year put option;
(e) A consisting of a share of Apple stock, a one-year put option, and the sale of a one-year call. In each case assume that the exercise price of the option is $400, which is also the current price of Apple stock.
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...