Group Assignment 1 Fall 2010

Group Assignment 1 Fall 2010 - In addition to documenting...

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Brigham Young University Institute of Business Management ManEc 453 Money, Banking and Financial Markets Group Assignment #1 Due: September 9, 2010 CORPORATE INVESTMENT This assignment consists of making an investment in the Corporation you were assigned. Take $100,000 and invest as much or as little as the group wishes in the stock of the company. You can go "long" or "short". You can buy options (calls or puts) or you can write options (calls or puts). Note that buying a call (the RIGHT to buy at the exercise price ) a "long" position as is writing a put (the OBLIGATION to buy at the exercise price if the stock is put to you). Any money not invested in the stock will be assumed to be in a money market fund earning interest at 1%. Note that no position can be taken in excess of $100,000.
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Unformatted text preview: In addition to documenting the investment you make and handing it in after class on September 9, please add a short paragraph about the company: a) What general market does it compete in (energy, food, etc.) b) What is the company's main product line c) Where is the company headquartered. d) When does the company's fiscal year end At the end of the semester the investments will be ranked in order of appreciation and group points determined by this ranking. NOTE: All trades will use the price at the close of business on the day of the trade. Liquidity can be an issue. It will not be allowed to buy or sell, on any given day, more than one half of the days trading volume. This is especially important if the trade is in options....
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This note was uploaded on 03/17/2011 for the course MANEC 453 taught by Professor Jerrynelson during the Fall '10 term at BYU.

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