The future of trade

 

1. Go to optionseducation.com look up the Micron MU short put, Nov short put. Select a strike down 15% from the stock. Using delta, gamma, and theta assume the stock rises by 2% in three days. Calculate the $ profit and ROI.

2. An equity portfolio is worth $100 million with a 1.3 beta. S & P 500 index futures are trading at 3,398 (multiplier 250, beta 1.00). You wish to synthetically decrease the beta to -1.00. You simulate a drop in the market by 1.50%. Calculate the # of contracts and do a proof.

 

3. Explain the following option strategies: covered call, protective put, long and short straddle.

4. Explain the difference in calculating the profit of the short straddle using a.) options algebra and b.) the 3 Greeks (delta, gamma, theta).

 

5. Explain how to calculate delta.

6. Explain in terms of slope and calculus the meaning of delta.

7. Explain the analogy of delta to duration.

8. Explain the long call and long put delta range.
9. Explain the absolute value of the sum of the straddle delta (position delta).

 

 

 

 

 

Sample Solution

 

 

The Others Lives of Frankenstein and the Monster

Victor Frankenstein purposely isolated himself from society and made his show-stopper of innovation. Shockingly, incidentally, the beasts he made additionally experienced partition from society, which disregarded his desire. As a young man, JVC is brimming with interest in science. JVC is sitting around to make you your “other”. As a young man, the logical hypothesis and strategy he examined were distinctive during this time and were totally disregarded by different researchers.

Frankenstein’s beast is regularly called “Frankenstein” and is an invented individual who initially showed up in Mary Shelley’s 1818 novel Frankenstein, or the advanced prometheus. Shelley’s title is hence a correlation between Victor Frankenstein, the maker of the beast, and the legendary character Prometheus, which utilizes earth to shape people and give them power. In Shelley’s Gothic story, Victor Frankenstein made living animals in his research facility through uncertain techniques for science and speculative chemistry. Shelly communicated the beast as 8 feet tall (2.4 m) tall, appalling, touchy and passionate. The beast attempted to mix into human culture yet it was evaded, and it drove him to look for retribution against Frankenstein. As indicated by researcher Joseph Carroll, this beast involves “the limit typically characterized between the saint and the foes’ attributes.”

At the point when you hear the name of “Frankenstein” you may think about an immense green beast. Nonetheless, in the first novel “Freaky Frankenstein” by Mary Wollstonecraft, the title alludes to Dr. Frankenstein who made the undead. To confound you, the beast in the book is additionally called Frankenstein. Accordingly, the specialized name of the beast is Frankenstein. The creator of ‘100 Years of Solitude and Love in the Age of Cholera’ has made a strange world by consolidating stunning thoughts. how right? Verse, particularly the verse of the cooler’s magnet. “There are these little magnets behind them, you can move them and make unusual sentences,” Marquez once told the questioner of the Paris Review. “That is the manner in which I create otherworldly authenticity – see this,” Umbrella tree eats purple lime “! This is insane. I put it in my next novel. ”

 

 

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