Select a stock from the S&P 500 index. and bring up its equity screen. Using the Bloomberg OSA screen, select several ca

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answerhappygod
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Select a stock from the S&P 500 index. and bring up its equity screen. Using the Bloomberg OSA screen, select several ca

Post by answerhappygod »

Select a stock from the S&P 500 index. and bring up
its equity screen. Using the Bloomberg OSA screen, select several
call and put options on the stock to form up the following two
strategies:
• Bull Call Spread: Long in call with low X and short in call
with high X
• Bear Put Spread: Long in put with high X and short in put with
low X
• Write a section to evaluate the two option strategies on the
stock with a profit graph/table.
• In each strategy, set your starting position for the stock to
100,000 (e.g., number of stocks is set to 100,000). On the OSA
screen, input the starting position (=10,000) for the stock. Decide
number of calls and puts you intend to long/short, add the number
of calls/puts on the OSA screen to form up each strategy. Remember
attaching the relevant Bloomberg screenshots in your report to
demonstrate what you have done. Explain the rational behind
this.
• Select a period in which you would have taken the strategy (as
you believe implementing the strategy is going to lead to a profit)
and calculate the profit generated from opening and closing at the
call/put prices for your selected period.
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