Q. Explain the Covered Call and Protective Put strategy with example?
6.4 Instructions :
your answer needs not to exceed 100 words.
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Entrepreneurship and small business
ASSIGNMENT -1
Learning Outcome:
1. Describe the place of small business in history and explore the strengths and weaknesses of small business.
2. Design a solid projected financial plan and conduct a breakeven analysis for a small company.
3. Demonstrate the ability to deliver and communicate marketing massages in coherent and professional manner.
An entrepreneur Start-up
Business Plan
A business plan is any simple plan, not only limited to the business start-up plan that helps the management to understand the current situation of the enterprises (strengths, weakness, opportunities and threats) and look forward into the future. A start-up plan is a business plan which consists of the mission, vision, objectives and action plans for the future of the new enterprises while the business plan drawn during the operation of the firm is vital for running the firm effectively, acquire new customers, partners, loans and so on. According to Fiore (2005), a business plan involves two dimensions; an organizing tool to simplify and clarify your business goals and strategy, the second one is a selling document that sells the business idea and shows that a product or a service can make a profit and attract funding and company resources.
Imagine you started a new business as an entrepreneur in Saudi Arabia. Briefly mention the specific steps which you consider necessary to a successful business plan.
Please, think and share information on the following items:
1. Owners, capital structure and company profile (3 Marks)
a. Your Business Name, Address, E‐Mail
b. Form of ownership: What is the legal structure? Sole proprietor, Partnership, Corporation….
C. Investment capital
2. Company Business Description (300 – 400 words)
A. Scope and type of business (5 Marks)
What business will you be in? What will you do? What market segment will you choose?
• Business idea: what is your big idea? Is it a product or a service? What makes your idea different?
• Mission Statement
• Company’s short-term and long-term goals and objectives.
• Target market and demographics: Who will your customers be? Where do they live? What is your target market passionate about?
B. Business Philosophy (4 Marks)
What is important to you in your business?
• Describe your Industry: Is it a growth industry? What long-term or short-term changes do you foresee in the industry? How will your company take advantage of it?
• Describe your most important company strengths and core competencies: What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?
• Risk Assessment: Evaluate the strengths and weaknesses of your business using SWOT.
•Who is your competition and how do you beat them?
3. Products and Services (3 Marks)
a. Briefly discuss your products or services (Technical specification).
b. Size of business: how many employees? How many offices and retail facilities?
c. What factors will give you competitive advantages or disadvantages? Examples, include level of quality or unique or proprietary features.
Note: Use APA style of referencing.
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Q1.Explain each of the following concepts as they relate to call options.
a. Rho
b. Theta
c. Vega
Q2.Discuss the covered Call strategy and protective Put strategy? And describe their advantages and disadvantages?
Q3. Consider a stock worth $35 that can go up or down by 15 percent per period. The risk-free rate is 10 percent. The exercise price of European call option is $35. Use one binomial period.
a. Determine the two possible stock prices for the next period.
b. Determine the intrinsic values/values at expiration of a European call option.
c. Find the theoretical value/Price of the option today.
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1. What are the different types of risks the banks and other financial institutions are exposed to?
2. What are the Asset-Liability Management Strategies? Explain.
3. Explain the loanable fund theory of Interest Rate Determination.
4. What are the different types of derivatives? Take an example and explain Interest rate swaps.
5. Calculate the interest-sensitive GAP (IS GAP) and Relative IS GAP ratio for a financial institution if interest-sensitive assets (ISA) are $100 million and interest-sensitive liabilities (ISL) are $125 million. Is that firm an Asset sensitive? Explain.
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Learning Outcomes:
1. Describe decision making process for complex issues pertaining to business environment both internally and externally (C.L.O :1.1)
2. Define different perspectives and concepts of problem solving in diverse contexts and business situations. (C.L.O :1.2)
3. Explain and apply critical thinking and cognitive psychology as it pertains to analyze and synthesize information for problem solving and decision making. (C.L.O :2.1)
Assignment Instructions for Part-I:
• Log in to Saudi Digital Library (SDL) via University’s website
• On first page of SDL, choose “English Databases”
• From the list find and click on EBSCO database.
• In the search bar of EBSCO find the following article:
Title: “Drive Innovation with Better Decision-Making.”
Author: Linda A Hill, Emily Tedards, Taran Swan
Date of Publication: November–December 2021
Published: Harvard Business Review
Assignment Question(s):
Part-I
Read the article titled as “Drive Innovation with Better Decision-Making.” by Linda A Hill, Emily Tedards, and Taran Swan published in Harvard Business Review, and answer the following Questions:
1. Summarize the article and explain the main issues discussed in the article. (In 500-600 words)
2. According to the article, why we should focus on Decision-Making? Discuss in relation with the text you learnt in the course. Use additional reference to support your argument. (In 400-500 words)
Part-II- Critical Thinking Question
3. “Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.” Explain the statement with example (Words 400-500)