urgent help needed 0

You are worried about the market and are thinking of hedging your gift from Uncle Norbert with stock options. 


Take hypothetical positions going short on a call and long on a put to hedge your gift.  Using Excel, graph the value of the gift for each of your hedging choices for possible closing prices at expiration.  The horizontal axis should represent the possible prices in November and the vertical axis should represent the value of the gift for each hedging choice: remaining unhedged, selling a call, or buying a put.  Label everything (axes, strike prices, premiums, etc.)



You must also decide whether or not to hedge; choose one of the three positions and justify your choice.  Include a discussion that explains your choice and why you did not choose the other two.  Your discussion should include your expectation of the price at expiration and the advantages and disadvantages of each position with regard to cash inflow and risk.  Also include an updated graph from Homework #1

Looking for solution of this Assignment?


We deliver quality original papers

Our experts write quality original papers using academic databases.  

Free revisions

We offer our clients multiple free revisions just to ensure you get what you want.

Discounted prices

All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount

100% originality

We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity

On-time delivery

We will deliver your paper on time even on short notice or  short deadline, overnight essay or even an urgent essay