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Mohsin 14830

The document shows stock and option return scenarios for AAPL stock and three put options (A, B, C) over the next month under different probability weighted market conditions. It also calculates total returns, variances, standard deviations, and an optimal investment portfolio allocation across AAPL stock and the three put options.

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Mohsin Zaidi
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40 views2 pages

Mohsin 14830

The document shows stock and option return scenarios for AAPL stock and three put options (A, B, C) over the next month under different probability weighted market conditions. It also calculates total returns, variances, standard deviations, and an optimal investment portfolio allocation across AAPL stock and the three put options.

Uploaded by

Mohsin Zaidi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Scenario 1 2 3

Probability 0.05 0.1 0.2


AAPL Stock Price (After1 month) $235.00 $225.00 $205.00
AAPL Stock Price (Now) 195 195 195
AAPL Return ($) $40.00 $30.00 $10.00
Put A Return ($) -$2.05 -$2.05 -$2.05
Put B Return ($) -$5.10 -$5.10 -$5.10
Put C Return ($) -$11.75 -$11.75 -$11.75

AAPL Return (%) 20.51% 15.38% 5.13%


Put A Return (%) -100.00% -100.00% -100.00%
Put B Return (%) -100.00% -100.00% -100.00%
Put C Return (%) -100.00% -100.00% -100.00%

Total Return ($) $1,251,352 $772,571 -$184,991


Squared Deviations ($) $1,178,833,171,523 $368,400,320,806 $122,921,747,265

Put Options A B C
Strike Price $185.00 $195.00 $205.00
Option Price $2.05 $5.10 $11.75

$ %
Mean Return $165,611 1.66%
Variance $137,486,387,457 1374863.87%
Standard Deviation $370,792 3.71%

Optimal Portfolio Investment ($) Investment (%) Number Purchased


AAPL $9,336,228 93.36% 47878.09
Option A $0 0.00% 0.00
Option B $0 0.00% 0.00
Option C $663,772 6.64% 56491.21

Total $10,000,000
4 5 6 7
0.3 0.2 0.1 0.05
$185.00 $175.00 $150.00 $130.00
195 195 195 195
-$10.00 -$20.00 -$45.00 -$65.00
-$2.05 $7.95 $32.95 $52.95
$4.90 $14.90 $39.90 $59.90
$8.25 $18.25 $43.25 $63.25

-5.13% -10.26% -23.08% -33.33%


-100.00% 387.80% 1607.32% 2582.93%
96.08% 292.16% 782.35% 1174.51%
70.21% 155.32% 368.09% 538.30%

-$12,728 $73,403 $288,730 $460,993


$31,805,055,716 $8,502,424,206 $15,158,345,368 $87,250,225,092

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