FIN 4453 The Payoff and Profit Curves for Alibaba Stock Options Discussion Paper

Question Description

I’m working on a finance question and need support to help me understand better.

assignment 7

In this assignment, follow the steps below and generate the payoff and profit curves for a stocks options.

1. Pick one stock you are interested in to analyze.

2. Select one call option and one put option for this stock based on your preference on the strike prices and expiration dates. The two options do not need to have the same strike price or expiration date. Collect last price information from Yahoo! Finance for the options selected.

3. In Excel, generate the following charts:

a. A chart to show the payoffs and profits for a long position in the call option selected based on different possible terminal underlying stock price;

b. A chart to show the payoffs and profits for a short position in the call option selected based on different possible terminal underlying stock price;

c. A chart to show the payoffs and profits for a long position in the put option selected based on different possible terminal underlying stock price;

d. A chart to show the payoffs and profits for a short position in the put option selected based on different possible terminal underlying stock prices.

For all charts above, you need to include the calculation details in Excel as the basis to create those charts.

4. Write a brief report in a Word file (400 words minimium)and briefly describe the following items:

What is your estimation of the future price of the underlying stock on the expiration date of those options selected? Just give a guess with some brief reasoning according to your instincts. No analysis needs to be done for this estimation.
Based on your estimation of the underlying stocks future price, use the charts created, draw a conclusion which option you would like to long or short.

check the link below to follow the instructors lectures in order to solve the assignment:

https://we.tl/t-rJgEZEcXog

^{"Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results."}

Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.