Assume that today is Feb 1, 2020 and you have been given C$ 5,000,000 fake money to trade till 20th April, 2020. In addition, you will be expected to apply your knowledge and wisdom in the investment world. Assume that you have C$ 5,000,000 fake money with access to all listed stocks, bonds, futures and options worldwide. You can trade in options and futures, in combination with the underlying asset. The objective of this exercise is to get familiar with different contracts offered by major exchanges. During this period, you will use fake money to perform the following trades and execute at least 12 strategies (more the better as long as it fits your portfolio strategy):

1) Speculative trade

2) Hedging trade

3) different type of option trading strategies

Answer rating: 100% (QA)

Answer 1 Speculative trade involves making profit by taking risk As per the current situation taking ... View the full answer