Question: Please help, and show any work! Need both answered as soon as possible and they relate. 2. Recommend an option hedging strategy based on your
Please help, and show any work! Need both answered as soon as possible and they relate.
2. Recommend an option hedging strategy based on your computed value per share. Assume you own 1000 shares of the stock at the current market price. Select either a protective put or a covered call strategy using options that expire in about 1 year. Calculate the expected return 1 year from now assuming that the stock attains your valuation per share. Show all your detailed computations to receive full credit. Stock Current Price: $53 Target price: $58 3. Recommend a Bull Call Spread or a Bear Call Spread based on your computed value per share. Calculate the expected return 1 year from now, assuming that the stock attains your valuation per share. Use 100 contracts for your option quantities. Show all your detailed computations to receive full credit. Stock Value per share: $54.02 2. Recommend an option hedging strategy based on your computed value per share. Assume you own 1000 shares of the stock at the current market price. Select either a protective put or a covered call strategy using options that expire in about 1 year. Calculate the expected return 1 year from now assuming that the stock attains your valuation per share. Show all your detailed computations to receive full credit. Stock Current Price: $53 Target price: $58 3. Recommend a Bull Call Spread or a Bear Call Spread based on your computed value per share. Calculate the expected return 1 year from now, assuming that the stock attains your valuation per share. Use 100 contracts for your option quantities. Show all your detailed computations to receive full credit. Stock Value per share: $54.02
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