Uber, Lyft Options Investors Buckle Up for a Wild Ride

Uber, Lyft Options Investors Buckle Up for a Wild Ride

Assessment

Interactive Video

Business

University

Hard

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The video discusses the financial challenges faced by Lyft and Uber, focusing on their burn rates and the impact of price increases. It highlights the significant operating losses expected for both companies, with Uber's losses including IPO costs. The video also examines the options pricing, indicating high volatility expectations, and explores investor sentiment, particularly the increase in hedging activities for Uber as it approaches its earnings report.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main financial challenge discussed for Lyft and Uber in this section?

Increasing their market share

Reducing their burn rates

Expanding into new markets

Improving customer satisfaction

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected operating profit loss for Uber in the third quarter?

$377 million

$500 million

$5 billion

$1 billion

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the options pricing for Lyft and Uber compare to the average Russell 1000 company?

It is about the same

It is lower

It is higher

It is not mentioned

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does a higher put-call ratio indicate about investor sentiment?

Investors are more bearish

Investors are confused

Investors are more bullish

Investors are neutral

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What significant activity is observed as Uber approaches its earnings report?

Stable market conditions

Increased buying of shares

Increased hedging

Decreased trading volume