SECTION $1$: Project Instructions

Note: You should take relevant screenshots $($Refer to Appendix$)$ while working through the project and refer to them when answering questions or discussing answers, if needed. The final copy of the project should include copies of the screenshots to which you refer in your answers and discussions.

Part $1$: Underlying Asset Information

Use the following guidelines to choose assets:

$1\mathrm{.}1$ SET A: THREE stocks $($ensuring that one is high volatile, and one is low volatile$)$

$1\mathrm{.}2$ SET B: TWO commodities.

Ensure that the chosen assets have corresponding options $($puts or calls for SET A$)$ and futures $($SET B$)$ traded on the market.

Explain the reasons for selecting these assets$/$commodities$.$ Consider factors such as firm performance, recent price trends, prospects, and other relevant criteria.

Part $2$: Strategies

$2\mathrm{.}1$ Options for SET A:

You are required to choose an appropriate option trading strategy to manage risk for each of the assets in SET A over a minimum period of four weeks $(04).$ Use one share per contract to implement your chosen option strategies.

Provide analyses explaining why you chose the specific trading strategy for each asset and all strategy$-$related information. It might include general information about the options used for your strategies, such as descriptions, recent prices, exercise prices, expiration dates, outcomes, etc. Additionally, provide information and screenshots of the options and stocks associated with the assets and strategies. Screenshots can be included in the appendices of your report.

$2\mathrm{.}2$ Futures for SET B:

You are required to choose either a LONG or SHORT position in the futures market for the commodities in SET B$.$ Provide an analysis explaining why you chose the specific position. Include relevant information and screenshots of the futures associated with these commodities. You will hold the position for $07$ consecutive trading days $($more than one week$).$

Part $3$: Strategy Outcome Discussion

$3\mathrm{.}1$ Options for SET A:

After four weeks, suppose you need to close your positions that you chose in Part $2\mathrm{.}1.$ Answer the following questions for each asset:

$1-$ Calculate and present your profit or loss.

$2-$ Discuss, analyse, and explain the reasons behind your profit or loss, considering the current situation of all the underlying assets$/$derivatives markets and related markets.

$3\mathrm{.}2$

Futures for SET B:

$1-$ Based on the positions you selected in Part $2\mathrm{.}2,$ you will need to analyse the Profit$/$Loss of each futures contract over a period of $07$ consecutive trading days.

$2-$ Discuss and explain the reasons behind the profit or loss for each position, taking into account the current market conditions of all the commodities involved.