1 Adam, a speculator, is convinced that the stock market will fall significantly in the…

1 Adam, a speculator, is convinced that the stock market will fall significantly in the forthcoming months. The current market index (14 August) level is 4997 (FTSE 100). He is investigating a strategy to exploit this market fall: Sell five FTSE 100 Index futures on NYSE Liffe with a December expiry, current price 5086. Extracts from the Financial Times FTSE 100 Index Futures (LIFFE) £10 per full index point Assume: No transaction costs. i What would the profit (loss) be if the index rose to 5500 in December under the strategy? ii What would the profit (loss) be if the index fell to 4500 in December under the strategy? iii Discuss the relative merits of using traded options rather than futures for speculation. Q228; 1 On 14 August British Biotech traded options were quoted on NYSE Liffe as follows: Assume: No transaction costs. a Imagine you write a December 180 put on 14 August. Draw a graph showing your profit and loss at share prices ranging from 100p to 250p. b Add to the graph the profit or loss on the purchase of 1,000 shares in British Biotech held until late December at share prices between 100p and 250p. c Show the profit or loss of the combination of a and b on the graph.  

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more