Put together a PowerPoint presentation with a table or graph included that illustrates what advice you would give Dr. Washington on the options if the price of the stock was US$18, US$21, US$24, or US$28 at the end of 6 months.

Call Option Strategy PPT (***** 7 Slides + Table + Graph *****)

So far, things have gone well with Dr. Washington. Before you wrap up your meetings and he begins investing, you decide to spend a little time sharing information with him about using derivatives to manage risk and enhance returns in his stock portfolio.

You decide the best way to illustrate this is via a call option that he can use on a stock that might have some upside potential. If the stock does not reach the potential, the option minimizes the risk. The stock is AXQ Enterprises—a high-tech firm that did well during the Internet boom but declined when the boom turned into a bust.

If the company’s new portal software is adopted by a large number of consumers over the next few months, you believe the stock can go much higher. The 6-month options are priced at US$1, the strike price is US$22, and the current price for AXQ stock is US$20.

Put together a PowerPoint presentation with a table or graph included that illustrates what advice you would give Dr. Washington on the options if the price of the stock was US$18, US$21, US$24, or US$28 at the end of 6 months.

Assignment Guidelines:

• Create a PowerPoint presentation for Dr. Washington that includes the following: 

Slide 1 – Title Slide (Name, course name, and unit number)Slide 2 – Your table or graph that contains the stock option data and the profit/loss depending on the stock prices of US$18, US$21, US$24, or US$28 at the end of the 6-month period. Slide 3 – Your recommendations on whether or not to exercise the option based on the four hypothetical stock prices from slide 2. Explain the reasoning behind your recommendations.Slide 4 – Answer the following question: What happens if the stock price hits US$23? US$23.01?Slide 5 – Answer the following question: What purpose could adding a technology company into a stock portfolio serve?

• Please be sure that your PowerPoint presentation adheres to the general presentation format above.

Your submitted assignment (
125 points) must include the following:

A 5-7 slide PowerPoint presentation that includes a title page, your stock option information table or graph, your stock option recommendations, and your answers to the questions listed in the Assignment Guidelines