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a) Our portfolio consists of five stocks, one put option and one futures contract. The five stocks we have are Exxon Mobil (XOM), Johnson & Johnson (JNJ), Google (GOOG), Ford (F), and Amazon (AMZN). These stocks are all traded on the NASDAQ stock market. We have purchased ten shares of each of the five stocks below. Below is a graph with shows when we purchased the stocks and how much it cost at that time. | Stock P | Date | Time | AMZN | $179.97 | 3/5/2012 | 1:28pm | XOM | $86.67 | 3/5/2012 | 1:29pm | GOOG | $614.70 | 3/5/2012 | 1:28pm | F | $12.48 | 3/5/2012 | 1:29pm | JNJ | $64.67 | 3/5/2012 | 1:28pm |

The table below now shows the results of how the stock performed from 3/5/12 to 3/16/12: We will discuss some stock analysis and the gain/loss later in this report. | Current | Date | Time | AMZN | 185.05 | 3/16/2012 | 1:28pm | XOM | 86.44 | 3/16/2012 | 1:29pm | GOOG | 625.4 | 3/16/2012 | 1:28pm | F | $12.51 | 3/16/2012 | 1:29pm | JNJ | $65.12 | 3/16/2012 | 1:28pm |

Other than having five stocks, we have a put option for Procter & Gamble and a futures contract of Gold.

b) Analyzing the futures contract of gold we bought at the beginning, March 2, 2012, it closed at $1,698 which meant our initial value was at $10,125 with a margin call at $7500. If it drops below that price then we would have to borrow money to bring it back up to the initial margin. On March 3, 2012, gold closed at $1702 resulting in a profit of 4 dollars per share increasing our profit by $400 and the resulting value of our gold became $10,525 On March 4, 2012, gold jumped another $3 resulting in a profit of $300 and an overall value of $10,825. On March 5, 2012, Gold raised $7 resulting in a profit of $700 and the value became $11,525. On March 6, the value dropped $5 dollars resulting in a loss of $500 and the overall gold value to decrease to $11,025. On March 7, gold decreased $6 resulting in a loss of $600, making the value of our gold worth only $10,425. On March 8, gold decreased $5, resulting in a loss of $500, results in our gold futures to be valued at $9,925. On March 9, gold decreased $8 resulting in a loss of $800 and making our gold to be valued at $9,125. On March 10, gold increased $3, gaining a profit of $300, increased our futures value of gold to $9,425. On March 11, gold dropped $6, resulting in a loss of $600. Therefore our gold futures are $8,825. On March 12, gold decreased $12 causing a loss of $1,200 resulting in the value of our gold to be $7625. On March 13, gold increased by $8, resulting in an $800 gain and the futures to be valued at $8,425. On March 14, gold decreased $4, resulting in a loss of $400 and the resulting value is $8,025. On March 15, gold decreased $6, resulting in a loss $600 and the overall gold value to drop $7,425. This results in a margin call, causing us to borrow $2,700 from the bank in order to bring our gold back to the initial value of $10,125. On March 16, gold increased $5, resulting in a gain of $500, making the overall value of the gold futures $7,925. $7,925 subtracted from our initial value results in a $2,200 loss overall in our gold option. In our portfolio, we had a put option for Procter & Gamble. Put option means that we are buying the right to sell the option at the strike price a later time. Without the premium, when buying a put option; if the stock price is lower than the strike price there would be a profit. At the time when we bought Procter & Gamble put option, the strike price is $67.50 and the ask price is $117. At the end, the stock price is $67.25, market price $67.25 is less than the strike price (which is the price that we are selling for), therefore we made a profit of 25 cents on each share. One contract has 100 shares, so we would take 100 and multiplying by 25 cents per share which equals to $25. Since we had to pay $117 premium, we would end up having a loss of $92 ($25-$117).
c) There are many market forces that can affect our product, especially gold. One factor that affects gold is the debt that affects western government and the abuse of paper currency. When central banks print more money to pay the bills and try to stimulate the economy, it devalues the dollar, resulting in higher prices for gold. (Stanczyk) Gold also performs very well during times of financial crisis. Gold can be considered an ideal hedge against inflation due to the fact that it can hold its value. There is a term called the gold slingshot affect. Basically it means you can increase your value in investing in gold without ever touching the precious metal itself by investing in the gold mining stocks. Let’s say gold is worth $1,000 and it increase $100 to $1,100. That same $100 dollars is also increased for a gold mining stock let say is worth $500 to $600 dollars resulting in a 20% increase in value. (Clark) Let’s take a look at the market forces that can affect our other products such as P&G. Companies that have low volatility and strong financials are usually overlooked in times of upward trends. P&G can be considered one of these companies. They are similar to Wal-Mart, not much movement involved in the stock, but overall a positive increase in stock price over the years. What makes this unexciting company a strong point is when it comes to put options. Since the beginning of the year P&G has been selling at a 60-70 dollar price range. If an investor were to buy a put option at the higher price range they will more than likely make a profit since it has a high chance to retrace back to the lower 60’s range. This is one of the reasons why we bought a put option with P&G. (Stokman)

Future | | | | | | | GCH12.CMX | Closing Price | Profit/Loss | Quantity | Total Profit/Loss | Initial | Min Margin | 3/2/2012 | $1,698 | | | | $10,125 | $7,500 | 3/3/2012 | $1,702 | $4 | 100 | $ 400 | $10,525 | | 3/4/2012 | $1,705 | $3 | 100 | $ 300 | $10,825 | | 3/5/2012 | $1,712 | $7 | 100 | $ 700 | $11,525 | | 3/6/2012 | $1,707 | $(5) | 100 | $ (500) | $11,025 | | 3/7/2012 | $1,701 | $(6) | 100 | $ (600) | $10,425 | | 3/8/2012 | $1,696 | $(5) | 100 | $ (500) | $9,925 | | 3/9/2012 | $1,688 | $(8) | 100 | $ (800) | $9,125 | | 3/10/2012 | $1,691 | $3 | 100 | $ 300 | $9,425 | | 3/11/2012 | $1,685 | $(6) | 100 | $ (600) | $ 8,825 | | 3/12/2012 | $1,673 | $(12) | 100 | $ (1,200) | $7,625 | | 3/13/2012 | $1,681 | $8 | 100 | $ 800 | $8,425 | | 3/14/2012 | $1,677 | $(4) | 100 | $ (400) | $8,025 | | 3/15/2012 | $1,671 | $(6) | 100 | $ (600) | $7,425 | $2,700 | 3/16/2012 | $1,676 | $5 | 100 | $ 500 | $7,925 | $ (2,200) |
d)
Put Option | Strike Price | Stock price | Quantity | Gain | Ask Price | Profit/Loss | PG120317P00067500 | $ 67.50 | $67.25 | 100 | $25.00 | $117.00 | -$92.00 |

e) The reason why we didn’t make money on gold is because currently the market is doing pretty well meaning the demand for gold is down. Also recently JP Morgan sold 15,000 contracts of gold or 1.5 million ounces. This basically lowered the price of gold that was on the market and kept a lid on the prices. (Hecht) The reason why we didn’t make money on P&G is a simple one. We bought P&G at when it was approaching the upper range towards the 70 dollar mark. Since we knew that P&G’s price range is between 60-70 dollars, we considered that a smart investor move. But the fact is we did not take into account the premium of $117 which threw us from a profit to a loss. If we had bought more shares or contracts we would be able to outset the premium and make a profit.
f) Although the gold futures have been a loss for us in this portfolio, it isn’t a lost cause. Gold has been historically known to be reliable and has seen positive gain through the years. As long as there are paper related money problems and inflation, gold prices will continue to rise in the long run, people depend on gold because it is something tangible, something that people can fall back on during recessionary periods. Next time we buy P&G we know exactly how to outset the losses with the premium taken into consideration. If we can analyze and figure out the price range of P&G before we buy our option we can most likely make a profit. The only constraint would be how much money we would have available to purchase enough contracts to overcome the premium., which shouldn’t be too much of a problem.
Stock Analyze:

Amazon:
Amazon.com, Inc. (Amazon.com) serves consumers through its retail Websites and focuses on selection, price, and convenience. The Company’s four customer sets include consumers, sellers, enterprises and content creators. Amazon comes from the NASDAQ industry, which was doing well at the time of purchase. During the two week performance Amazon maintained a good balance increase in the closing price. The beta stayed at 1.00, which was stable with NASDAQ making it a profitably stock. Comparing to the industry, these two weeks Amazon did really well. When comparing to its competitor EBay, Amazons’ price per earnings currently resides at 136.19, which is really high compared to EBay, which is currently at 14.38. This means that Amazon in the long run is doing better then EBay. This could be for a number of reason, in which includes the new realize of the new Kindle Fire. The reason why companies such as these are able to maintain high/increasing stock prices is due to what they are able to create in order to benefit the consumer, which their competitors have not thought of. By having unique ideas and products and at prices that are reasonable, the more the people will consume which means the higher the stock price.

Google:
Google Inc. is a global technology company focused on improving the ways people connects with information. The Company generates revenue primarily by delivering online advertising. As of December 31, 2011, the Company’s business was focused on areas, such as search, advertising, operating systems and platforms, and enterprise. Businesses use its AdWords program to promote their products and services with targeted advertising. In addition, the third parties that comprise the Google Network use its AdSense program to deliver relevant advertisements that generate revenue. During the two weeks, Google rose in closing price by ten dollars however did really poorly compare to the NASDAQ industry average. Due to Google’s substantial increase in stock prices, investors have been pleased with this outcome, it seems that Google’s stock will not be decreasing anytime soon, since the buy out of YouTube, with this mentioned YouTube's shareholders were then combined with Google's, though Google does produce cell phones and Android operating systems for these phones along with other internet sites, the company has broadened their horizons and options, which has opened opportunities for the company. If Google still pushes to strive for opening more opportunities it is without a doubt that their stock prices will decrease in value

Exxon:
Exxon Mobil Corporation is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products. It also has interests in electric power generation facilities. The Company has a number of divisions and affiliates with names that include ExxonMobil, Exxon, Esso or Mobil. During the two weeks, Exxon dropped a couple dollars in closing price. Compared to S&P500 in the beginning of the month it was doing well and was higher then the industry average however fell quickly. Currently, Exxon is doing all right but not at its best. When comparing to its competitor Total, Exxon’s price per earnings currently resides at 9.76, which is higher than Total’s price per earnings ratio 6.79. Since it isn’t a significant difference, we can conclude that in the long run this stock won’t be the strongest investment. In reference to the chart below, for the two weeks we had the Exxon stock, we can see that it is an unstable investment. It is rapidly increasing and decreasing

Ford:
Ford Motor Company (Ford) is a producer of cars and trucks. The Company and its subsidiaries also engage in other businesses, including financing vehicles. The Automotive Sector includes Ford North America, Ford South America, Ford Europe and Ford Asia Pacific Africa. Financial Services includes Ford Motor Credit Company and Other Financial Services. Ford North America includes the sale of Ford- and Ford hasn’t been doing that well if we compare it with the industry average. Ford has been well below S&P500, even going in the negative. Stock prices have fallen not rapidly but slowly. However, since ford is trying to be on the more luxurious side like Nissan they are trying to improve their materials. When comparing the price per earnings ratio of the two competitors Nissan’s price per earnings ratio (11.57) was significantly higher then Fords (2.35). That is simply because Nissan is already a well establishing luxury call while Ford has always been the American car.

Johnson and Johnson:
Johnson & Johnson is a holding company. The Company, along with its subsidiaries, is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. The Company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. Johnson and Johnson have been on par with the industry. Stock prices have risen and they have come out with new products that are giving them a more valuable name. Compared to its highest competitor, Pfizer, a researched-based global biopharmaceutical company, Johnson and Johnson have a price per earnings ratio of 18.43 compared to 19.92. However, since the difference is less then 2 we are assuming that this change is because of the different markets the companies reach out to. Johnson and Johnson is a big consumer base company while Pfizer is more of a vendor base.

Works Cited
Clark, Jeff. "Gold's Slingshot Effect - Casey Research." Casey Research. Casey Research. Web. 05 Apr. 2012. <http://www.caseyresearch.com/crpmkt/crpSolo.php?id=169>.
Hecht, Andy. "When Central Banks Are Buying, So Should You." Sovereign Investor. The Sovereign Investor, 19 Mar. 2012. Web. 06 Apr. 2012. <http://sovereign-investor.com/2012/03/19/when-central-banks-are-buying-so-should-you/>.
Stanczyk, Alex. "Global Factors Affecting Gold." FINANCIAL SENSE. Financial Sense, 23 Sept. 2011. Web. 06 Apr. 2012. <http://www.financialsense.com/contributors/alex-stanczyk/2011/09/23/global-factors-affecting-gold>.
Stokman, Henry. "Playing Procter & Gamble's Sideways Trading Action - Seeking Alpha."Stock Market News & Financial Analysis. Seeking Alpha, 20 Mar. 2012. Web. 10 Apr. 2012. <http://seekingalpha.com/article/446441-playing-procter-gamble-s-sideways-trading-action>.