FIN 550

1-Create a scenario where an investor would benefit from using option contracts to minimize risk. The option in the stock investment seems to have a lot of advantages like it protects the investor from suffering from a huge loss, trading off into long term and the foremost advantage is the buying the stock with calls […]

Sheet1 Sheet2 Sheet3 5.a.                   Stock T Stock B     Year Return Return – AM (Return – AM)^2 Return Return – AM (Return – AM)^2     1 0.19 0.136 0.018496 0.08 0.136 0.136     2 0.08 0.026 0.05400000000000001 0.03 0.05400000000000001 0.05400000000000001     3