ABF305 Investment Management
ABF305投資管理

Term 1 Workshop 3 Questions. 
第1學期研討會3個問題。
 

Question 1
問題1

As an investment manager, you have been approached by a student who has drawn the following three payoff diagrams for an option trading strategy.
作為投資經理，你一直在找的學生得出了以下三個圖回報的期權交易策略。
The first was supposed to be the payoff diagram for a collar, the second was supposed to be the payoff diagram for a spread, and the third was supposed to be a payoff diagram for a straddle. Unfortunatel y, the student has gotten confused and so the diagrams are wrong! 
 
Using your own words, how would you explain to the student what it is they have drawn in terms of the payoff diagram and so demonstrate the diagrams are incorrect?
You could illustrate in your answer, an example of what they should have done.

 
Question 2
問題2

As an investment manager, you have been given a stock position of 100 shares in Green Incorporated for which the share price was $102.  Based on your viewpoint of what you think the share price will do, choose an appropriate option trading strategy for your viewpoint.   
作為投資經理，你已經被賦予了股票倉位綠色公司100股的股價為1.02。根據你的觀點，你認為股價將做什么，選擇一個合適的期權交易策略，為您的觀點。
 
Question 3
問題3

An option (value) price depends on:  (1) the stock price; (2) t he time to expiration; (3) the exercise price; (4) the interest rate; (5 ) the dividend rate of  the stock, and (6) the volatility of the stock price.
選項（值）的價格取決于：（1）股票價格，（2），到期時間（3）行使價;（4）利率;（5）股息率的股票，（6）股票價格波動。
 
For a call option , 
(a) If the time to expirati on increased, would the call option price go up or down?
(b) If the volatility increased, woul d the call option price goes up or down?
(c) If the exercise price increased, would the call opt ion price go up or down?
 
In your own words , explain the reason behind eac h stock price change.