Examine the historical prices of the stock and one of its call and puts options Select a

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Examine the historical prices of the stock and one of its call and puts options Select a time period that the options were active.

a. Use the Chart screen (Chart ) to create multigraphs for the stock, call, and put. On the Chart Menu screen, select the Standard G chart; once you have loaded your securities, go to "Edit" to put your graphs in separate panels.

b. Select a period in which you would have taken a long call position and calculate the profit from opening and closing at the call prices at the beginning and ending dates for your selected period. Calculate the losses if you had taken a long put position.

c. Select a period in which you would have taken a long put option position and calculate the profit from opening and closing at the put prices at the beginning and ending dates for your selected period. Calculate the losses if you had taken a long call position.

d. Using the annotation bar, apply the "\% Change" tool to calculate the percentage change for your select periods, and then click the "News" icon on the annotation bar to find relevant news events on or preceding the opening date.

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