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Options Strategies on Microsoft and Facebook Stocks (A)
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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 purpose, in order to achieve the next level of growth. The case study provides sufficient information to construct, distinguish, and analyze the payoff profiles of various Options strategies. |
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Issues
The case is structured to achieve the following teaching objectives:
- Construct various basic Options strategies with the help of NYSE Options data.
- Calculate the payoff profiles of using various Options strategies using Options data of Microsoft and Facebook
- Analysis the risk and reward in using Options strategies
| Contents |
| INTRODUCTION |
| EXHIBIT |
Keywords
Long Call, Short Call, Long Put, Short Put, Covered Call, Protective Put, Microsoft, Facebook, In-The-Money, Out-of-The-Money, Strike Prices, Options strategies, Options.