This assignment is for the BSc (Hons) Finance and Investment Management program, specifically for the Derivatives and Risk (AF5038) module. It requires to design a speculative trading strategy using options for a publicly traded company’s shares, using a £100,000 investment over a set period.
Key Requirements:
- Section A (1000 words, 35 marks):
- Develop a speculative options trading strategy based on market analysis.
- Use real-world data and academic literature to justify your approach.
- Provide screenshots of options pricing in an appendix.
- Section B (500 words, 10 marks):
- Explain the payoff structure and expected annualized return.
- Assess risks associated with the strategy and the use of derivatives.
- Section C (500 words, 15 marks):
- Evaluate the actual profit and loss of the strategy.
- Analyze why the strategy performed as it did.
Important Notes:
- The word limit is 2,000 words (+10% allowed).
- Submission deadline: 22nd May 2025, 23:59 BST.
- The assignment is worth 60% of the module’s total mark.
- Requires submission via Turnitin.