Two tasks Use Bloomberg to estimate the prices and the Greeks of the following stock index options Note that these are DJIA Index Options and

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Task 1 (a) Use Bloomberg to estimate the prices and the Greeks of the following stock index options Note that these are DJIA Index Options and the value of the index today is assumed to be 10,400. The options should be priced within a Black & Scholes framework using the following inputs: rate of interest %p.a., dividend yield %, and volatility % clearly each necessary step requested to compute the price and the Greeks of the options above. (b) Write a short report with a critical summary of the results. Task 2 Consider the Capital Asset Models (CAPM). (a) Describe and critically asses the CAPM? (b) Use Bloomberg to collect data on 4 stocks from the FTSE 100 index. Assume that you invest an equal amount of your wealth on each stock and build up a portfolio. Assume...

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