Analyze the payoffs to the options. Using a range of possible stock prices from

Question

1. Analyze the payoffs to the options.
   1. Using a range of possible stock prices from $1 through twice the current underlying stock price, draw the payoff diagram for the call option. Refer to this chart as CALLOPT.
   2. Using a range of possible stock prices from $1 through twice the current underlying stock price, draw the payoff diagram for the put option. Refer to this chart as PUTOPT.
2. Analyze the payoffs to covered and naked positions.
   1. Using a range of possible stock prices from $1 through twice the current underlying stock price, draw the payoff diagram for the combined strategy of writing the call option and owning the underlying stock (assume that the same number of shares are in the call option as are owned). Refer to this chart as COVOPT. Please help with these questions
      

Explanation / Answer

The programme has as a major objective the development and training of professional people and individuals in all aspects related to investment analysis and portfolio management. On completion the candidate should be able to analyse investments in financial assets and the ability to manage a portfolio.

Duration of the programme
Twelve months.

Registration requirements
Anational senior certificate or equivalent qualification. Prospective students who have no knowledge of accounting and/or finance are encouraged to complete the Course in Financial Management (71293)before attempting this programme.

Content

Evaluation and examination
Students will be assessed by means of two assignments per module completed during the course of the year.

The provisional examination dates are published onmyUnisa

Formal two-hour examinationsin each of the compulsory modules will be writtenduring October/Novemberat official Unisa examination centres.

To pass a module, a student must obtain a minimum of 50% in the examination. A mark of at least 75% will constitute a distinction.

Credits
NQF level 6
48 credits

Advanced study opportunities
Students who have successfully completed the pro

Code Module PINV016 The investment background PINV028 Investment analysis PINV039 Portfolio management PINV04A Ethics Optional module: PINV05B Tax planning for investments

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