Comments from Thursday's Class
A copy of the notes used for discussions of futures and options, as well as covering similar objectives of hedging and speculating in the forward market, is available on my I drive (I:jjulian) in the folder for Econ 346.
As a followup to Mr. Barnacle's pooh poohing of a $75 profit on a $9,925 investment: Supposing that the option was exercised after holding it for a month (in class it was "a few weeks" or something like that), the return over one month would be 0.75%. Multiply that by 12 for an annualized rate of return: 0.75 x 12 months = 9.07%. That really isn't too shabby. ;-)
BTW, this assignment is due on Thursday, Feb. 24 (not 25th as indicated on the handout).
Power to the People!
Right on!
--John Lennon
As a followup to Mr. Barnacle's pooh poohing of a $75 profit on a $9,925 investment: Supposing that the option was exercised after holding it for a month (in class it was "a few weeks" or something like that), the return over one month would be 0.75%. Multiply that by 12 for an annualized rate of return: 0.75 x 12 months = 9.07%. That really isn't too shabby. ;-)
BTW, this assignment is due on Thursday, Feb. 24 (not 25th as indicated on the handout).
Power to the People!
Right on!
--John Lennon
posted by Atomic Kid at 4:20 PM
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