Question: Q1. (a). Using Yahoo finance data, estimate the value for the ATT stock using Relative Value Ratios. Show your computations. (b). Determine the Price target
Q1. (a). Using Yahoo finance data, estimate the value for the ATT stock using Relative Value Ratios. Show your computations.
(b). Determine the Price target 1 year from now. Briefly explain your inputs and logic.
(c). Recommend an option hedging strategy based on your 1 year price target. Assume you own 1000 shares of the stock at the current market price. Select either a covered call strategy or a protective put strategy. Calculate the expected outcome in 1 year assuming the stock attains your 1 year price target.
(d). Recommend a Bull Car Spread or a Bear Call Spread based on your 1 year price target. Calculate the expected outcome in 1 year assuming the stock attains your 1 year price target. Use 100 contracts for your option quantities.
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