Economics Homework Help

You are asked to select one of the stocks in your individual portfolio and analyze the possible gains and costs of purchasing options in that stock. Please use the stock: Telecommunications AT&T (Ticket Symbol: T)

Action Items

1. Select one of the stocks chosen for inclusion in your initial stock portfolio.
2. Go to Yahoo! Finance.
3. Enter the stock symbol of the chosen stock in GET QUOTES box at the top left of the Yahoo! Finance main page. For example, enter GOOG for Google Inc.
4. Identify its last traded price, write it down on a piece of paper.
5. In the left blue shaded menu, look for “Options” under the heading of “Quotes”. Click “Options” where the Call Option Quotes and Put Option Quotes are reported.
6. Obtain one of each for Call Option Quotes and Put Option Quotes. The TWO quotes must meet the following two criteria:
   1. The strike price is approximately equal to the stock’s last traded price you wrote down earlier on your piece of paper.
   2. The expiry date is in three to six weeks.

   NOTE: Please see your instructor should none of your individual portfolio stocks have option quotes.

7. Download Stock Options Worksheet and complete all the questions.

Submission Instructions

Click the Submit button in the Toolbox to upload your completed assignment by Sunday of this week.

Grading Criteria

• Content: 0 – 20 points
  • All the sections and components requested by the assignment were included. (0 – 10 points)
  • Information were accurate. (0 – 10 points)
• Evidence of critical thought in answering the questions: 0 – 20 points