Discuss the covered Call strategy and protective Put strategy? And describe their advantages and disadvantages?Determine the intrinsic values/values at expiration of a European call option.

Submission Date by students: 27/10/2022-11:59 PM
Place of Submission: Students Grade Centre via blackboard.
Marks: 10 Marks
Assignment Question(s):
Q1.Explain each of the following concepts as they relate to call options.
a. Rho
b. Theta
c. Vega

Q2.Discuss the covered Call strategy and protective Put strategy? And describe their advantages and disadvantages?

Q3. Consider a stock worth $35 that can go up or down by 15 percent per period. The risk-free rate is 10 percent. The exercise price of European call option is $35. Use one binomial period.
a. Determine the two possible stock prices for the next period.
b. Determine the intrinsic values/values at expiration of a European call option.
c. Find the theoretical value/Price of the option today.

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