Assignment 4 – Part B: The Million Dollar Challenge
Due: December 9th, 4PM
1. Research and choose an option strategy (e.g., Straddle). Write a brief
description of that strategy and what you hope to achieve. Implement the
strategy in the Investopedia game and describe your results in a page or two
(you may include figures and diagrams).
2. Pick a stock and download price history data from finance.yahoo.com.
Use a spreadsheet and binomial tree model and calculate the price of an
American put option on that stock. Discuss the results.
12⽉ 12 ⽇ , 4 PM