FIN 402 Expect Success/uophelp.com FIN 402 Expect Success/uophelp.com | Page 29
FIN 402 Week 5 Individual Assignment Investment
Enhancement Paper
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Prepare a 1,050- to 1,750-word paper in which you address the following:
Analyze effects of international portfolio diversification on an investment
portfolio.
Examine alternative investment vehicles.
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FIN 402 Week 5 Weekly Problem Set
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1. You purchase one IBM July 125 call contract for a premium of $5. You
hold the option until the expiration date when IBM stock sells for $123 per
share. You will realize a ______ on the investment.
2. You purchase one IBM July 120 put contract for a premium of $5. You
hold the option until the expiration date when IBM stock sells for $123 per
share. You will realize a ______ on the investment.
3. You write one IBM July 120 call contract for a premium of $4. You
hold the option until the expiration date when IBM stock sells for $126 per
share. You will realize a ______ on the investment.
4. Longer term European style options with maturities of up to three years
are called ___________.
5. A futures call option provides its holder with the right to
____________.