Investment Management Department – Case Analysis

Investment management department

Assignment The assignment is an individual piece of work (as opposed to a piece of written group work) and you have a task to answer all three elements of the question. The investment management department of your company has asked you to construct a speculative trading strategy using options. They ask you to invest £100,000 in options trading strategy for a non-bank. Non-insurance company’s shares for period between 26th February 2021 and 16th April 2021 (inclusive). For the company whose shares are to be the underlying for your options. Set up a base for options trading strategy given your view of the company current market sentiment regarding the segment in which it operates • likely market movements over the period.

Further Description

You must support your analysis using real market data (suitably evidenced) as well as suitable academic literature covering analysis methods such as, for instance, economic, fundamental, technical etc. You must include ‘screen shot’ evidence of the source of your options pricing in an appropriately referenced appendix department.(1000 Words: 35 Marks)b. What is the annualized return that you are targeting based on your approach? Assess the risk that your strategy will not produce the returns you have anticipated. You must also assess the risks that the use of an options derivative instrument has introduced to the investment management department.(500 Words: 10 Marks)c. Report on the actual profit and loss of your strategy over the period. Further analyze its actual performance relative to its forecast performance. Consequently analyze why your strategy achieved the results observed.

(500 Words: 15 Marks)Process the assignment by word within the limit of 2,000 words (excluding appendices, tables, charts and graphs). The word count must be stated in the assignment. References to relevant academic theory and research findings should be provided and referenced appropriately. To complete the assignment, you are required to refer to books and academic journal articles and authentic sources such as Bloomberg. Do not use wikipedia, investopedia, investor word, tutor4u and other non-academic sources. PLEASE include: sources and tables and finally graphs if need be and source them

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