{"id":80675,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/finance-paper-3"},"modified":"2017-08-18T07:41:53","modified_gmt":"2017-08-18T07:41:53","slug":"finance-paper-3","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/finance-paper-3\/","title":{"rendered":"Finance paper"},"content":{"rendered":"<p>Garner Money Management Inc., is in charge of a $50 million portfolio.&nbsp; Its beta is equal to the market.&nbsp; To hedge its position it writes 200 December 1100 call options contracts on the S&amp;P 500 Stock Index priced at $74 per contract.&nbsp; It also buys 300 December 1100 put option contracts on the same index for $31 per contract.&nbsp; Instead of going down, the market and the portfolio go up by 10% and the S&amp;P 500 Index ends at 1263.<\/p>\n<p>Consider the change in the portfolio value and the gains or losses on the call and put options.&nbsp; Recall that option contracts trade in units of 100.&nbsp; What is the overall net gain or loss of Garner Money Management as a result of the changes in the market?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Garner Money Management Inc., is in charge of a $50 million portfolio.&nbsp; Its beta is equal to the market.&nbsp; To hedge its position it writes 200 December 1100 call options contracts on the S&amp;P 500 Stock Index priced at $74 <a href=\"https:\/\/www.benedictsol.com\/blogs\/finance-paper-3\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-80675","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/80675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=80675"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/80675\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=80675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=80675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=80675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}