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DUE Date: November 29
Basic Call Options Project (50 points) 1. On October 14 (Friday), buy five January (or later expiration) call option contracts on five different stocks whose prices are expected to increase. Select exercise price close to the current stock price of each stock. 2. On November 18 (Friday), make the following transactions a. Sell (offset) all five contracts at the last price. b. Exercise all five contracts. 3. Identify a brokerage firm and pay appropriate commissions on all your transactions.

Your Report/Presentation should include the following 1. Provide a one-paragraph explanation on WHY you think the price of each of five stocks will increase. 2. Provide and explain the following for each of the five call options as of October 14: a. Volatility b. Delta, Gamma, Theta, Vega, and Rho 3. On Excel, provide a graph of end-of-week stock price, intrinsic value (if any), time value, and call premium. EXPLAIN THE RELATION BETWEEN YOUR STOCK PRICE AND CALL PREMIUM FROM OCTOBER 14 TO NOVEMBER 18. 4. Prepare a profit/loss chart for the “sell (offset)” transaction. 5. Prepare a net profit/loss chart for the “exercise” transaction. 6. Provide a one-paragraph summary of your call transactions.

Basic Put Options Project (50 points) 1. On October 14 (Friday), buy five January (or later expiration) put option contracts on five different stocks whose prices are expected to decrease. Select exercise price close to the current stock price of each stock. 2. On November 19 (Friday), do the following transactions a. Sell (offset) all five contracts at the last price. b. Exercise all five contracts. 3. Identify a brokerage firm and pay appropriate commissions on all your transactions.

Your Report/Presentation should include the following 1. Provide a one-paragraph

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