Description
For this task, you will analyze the effect on a call option’s price that results from various financial factors.
First review the module resources, especially Chapter 8. Next address the following questions:
What effect does Stock Price have on call option price?
What effect does Time expiration have on call option price?
What effect does Risk-free rate have on call option price?
What effect does Standard Deviation of Stock returns have on call option price?
Refer to your textbook and other course materials to support your responses. Please include at least one scholarly resource as a reference, excluding your textbook.
FIN 550 Module Eight Short Paper Guidelines and Rubric
Overview
For this task, you will analyze the effect on a call option’s price that results from various financial factors.
Prompt
First, review the module resources, especially Chapter 8 in your text. Then, address the following questions:
What effect does Stock Price have on a call option price?
What effect does Time expiration have on a call option price?
What effect does Risk-free rate have on a call option price?
What effect does Standard Deviation of Stock returns have on a call option price?
Refer to your textbook and other course materials to support your responses. Include at least one scholarly resource as a reference, excluding your textbook.
What to Submit
This short paper should be 2–3 pages in length (not including your Title Page or List of Reference/Sources Page), double spaced, with 12-point Times New Roman font, one-inch margins, and citations in APA style.
Module Eight Short Paper Rubric
Criteria Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value
Main Elements Includes all of the main elements and requirements and cites multiple examples to illustrate each element Includes most of the main elements and requirements and cites a few examples to illustrate each element Includes some of the main elements and requirements Does not include any of the main elements and requirements 25
Inquiry and Analysis Provides in-depth analysis that demonstrates complete understanding of multiple concepts Provides in-depth analysis that demonstrates complete understanding of some concepts Provides in-depth analysis that demonstrates complete understanding of minimal concepts Does not provide in-depth analysis 20
Integration and Application All of the course concepts are correctly applied Most of the course concepts are correctly applied Some of the course concepts are correctly applied Does not correctly apply any of the course concepts 10
Critical Thinking Draws insightful conclusions that are thoroughly defended with evidence and examples Draws informed conclusions that are justified with evidence Draws logical conclusions, but does not defend with evidence Does not draw logical conclusions 20
Research Incorporates many scholarly resources effectively that reflect depth and breadth of research Incorporates some scholarly resources effectively that reflect depth and breadth of research Incorporates very few scholarly resources that reflect depth and breadth of research Does not incorporate scholarly resources that reflect depth and breadth of research 15
Writing (Mechanics/ Citations) No errors related to organization, grammar and style, and citations Minor errors related to organization, grammar and style, and citations Some errors related to organization, grammar and style, and citations Major errors related to organization, grammar and style, and citations 10
Total: 100%
