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FIN 567 Knowledge is divine / snaptutorial.com

<br>Assume that you have $500,000 to invest in equities and want to establish a new portfolio that includes ten (10) stocks to be selected from the Dow Jones Industrial Average of 30 companies. It is also desired to start with nearly equal dollar values of each issue. Use current market prices to compute the number of shares required.<br> <br>You are bullish on the markets in the long-term; however, you have read analyst predictions that over the next 18 months the market will likely stay flat with some downside potential. Despite these predictions, you want to make some money in the short-term, and at the same time avoid any downside spikes in the markets. A hedging strategy using options and/or futures seems appropriate. Please develop a plan to accomplish your goal and give a detailed

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FIN 567 Knowledge is divine / snaptutorial.com

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  1. FIN 567 Knowledge is divine / snaptutorial.com

  2. FIN 567 Knowledge is divine / snaptutorial.com FIN 567 Class Project For more classes visit www.snaptutorial.com Assume that you have $500,000 to invest in equities and want to establish a new portfolio that includes ten (10) stocks to be selected from the Dow Jones Industrial Average of 30 companies.  It is also desired to start with nearly equal dollar values of each issue.  Use current market prices to compute the number of shares required.

  3. FIN 567 Knowledge is divine / snaptutorial.com FIN 567 Final Exam For more classes visit www.snaptutorial.com Question 1.      Question :        (TCO E) A stock sells for $60 and the risk-free rate of interest is 10%. A call and a put on this stock expire in one year and both options have an exercise price of $55. How would you trade to create a synthetic call option? If the put sells for $2, how much is the call option worth? (Assume annual compounding.)

  4. FIN 567 Knowledge is divine / snaptutorial.com FIN 567 Midterm For more classes visit www.snaptutorial.com Question 1.      Question :        (TCO A) An order that closes an existing position is called a(n) ______. Question 2.      Question :        (TCO A) Which of the following is not a characteristic of a short call position?

  5. FIN 567 Knowledge is divine / snaptutorial.com

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