My writer delivered an awesome dissertation on the Creek War, I definitely didn’t have the time to do all the research she did on my own.
Essay (any type)
09/08/2022
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.
