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Financial Economics
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Important Notice: Do not try to download the material below until we are ready to use it in class. Why not? Because I sometimes upgrade the files as the class proceeds prior to the use of the material and I typically use the same filenames as before and I do not notify anyone of the upgrade. Therefore, download the material only when assigned.
This material is generally presented below in the order that I expect to use it, but I may change the order from time to time.
Assignment 1: Build a stock portfolio
You are required to build a portfolio of stocks at the outset of the
course. Read and complete these complicated assignments:
Part 1
(print and read this first)
Part 2
(not due until Module 2).
In this assignment you are to use finance/google’s stock screener to make some stock selections using specified criteria.
Assignment 3: Finding Mutual Fund Candidates
In this assignment you will be asked to review the performance and fee structure of some mutual funds.
Go to either the Yahoo or
Google financial sites and find the March option chains for (1)
the DIA ETF and (2) a stock of your choice (perhaps from your portfolio). Then
for both buy either an out-of-the-money call or put. You can choose any
strike price so long as it is out of the money. It should be close enough to
the money to have the potential to be worth something before expiration, and it
should have adequate volume and open interest. For each stock you must buy
either a call or put, but you are allowed to buy a put in one and a call in the
other. Price your purchase at best ask. Pretend that you are buying 10
contracts in each. Record the prices of the stocks and options and the size of
your transaction. This will be turned in. Monitor the progress of your
investment until options expiration, and make sure to record your value on
expiration day. This will also be turned in.
Download this assignment here or on the module assignments page for Writing Covered Call Options. The Excel workbook component of that program can either be downloaded from within the homework page or from here: download the Excel workbook to be used in this assignment.
Assignment 6: Buying Bonds with Treasury Direct
This assignment will be done in class, but to do it you will need to download this Treasury Tender Document.
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