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Options Strategies on Microsoft and Facebook Stocks (C)
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Abstract
The case study describes how the board of Newway Bright Stock Fund, a first generation fund management firm, decided to use Options investment strategies for hedging as well as for speculation purposes, in order to achieve the next level of growth. It provides sufficient information to construct, distinguish, and analyze the payoff profiles of various Vertical Spread strategies. |
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Issues
The case is structured to achieve the following teaching objectives:
- Construct various Vertical Spread strategies with the help of NYSE Options data.
- Calculate the payoff profiles of using various Vertical Spread strategies using Options data of Microsoft and Facebook.
- Analyze the risks and rewards involved in using Vertical Spread strategies.
| Contents |
| INTRODUCTION |
| EXHIBIT |
Keywords
Bullish Vertical Spread, Bearish Vertical Spread, Microsoft, Facebook, In-The-Money, Out-of-The-Money, Strike Prices, Options strategies, Options, Put, Call, Long, Short.
