Options Insight: Will Twitter Actually Sell?

Options Insight: Will Twitter Actually Sell?

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

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The video discusses market volatility preparedness, focusing on two phases of risk management. Initially, it covers strategies like collars and stock replacement to manage individual stock risks. The discussion then shifts to broader market strategies, including index hedges and long volatility exposure. A case study on Twitter is presented, analyzing its market position and potential strategies amid speculation of a sale.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the expected trend for US equity market volatility post-Brexit?

Unpredictable

High and unstable

Low and stable

Moderate and fluctuating

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which strategy was recommended for managing risk with Lululemon's stock before earnings?

Investing in bonds

Selling all stocks

Using call spreads

Buying more stocks

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the outcome of the call spread strategy for Lululemon post-earnings?

The call spread doubled in value

The call spread lost value

The call spread was unaffected

The call spread gained value

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a major issue for Twitter that affected its market perception?

Excessive profits

Ongoing user growth issues

Strong monetization

High user growth

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What strategy was suggested for Twitter in case of a potential deal?

Investing in a different company

Selling all shares

Using a 20-25 one by two call spread

Buying more shares