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

a Using the figures in Section 213 beta 127 b P 430 EX 430 04068 t 10 rf 003 annually Nd1 06088 Nd2 ...

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

Question:

Calculate and compare the risk (betas) of the following investments:

(a) A share of Google stock;

(b) A one-year call option on Google;

(d) A portfolio consisting of a share of Google stock and a one-year put option;

(e) A portfolio consisting of a share of Google 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 $430, which is also the current price of Google 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...