CME Group’s website
(https://www.cmegroup.com/) provides comprehensive information on derivatives
trading and can be used as the major information source of this assignment.
The simulator can be accessed after registration (free) and login (see following
link). Initially, each trading team will have $100,000 to trade but you do not need to
use all the amount.
Register and login from the following link:
Cryptocurrencies suffered crashes in 2022. Frequent price recoveries also
happened after crashes. Go to “Cryptocurrencies” tag and these are cryptocurrencies derivatives. Implement a trading strategy by taking long positions in one call option and one put option on the same “Bitcoin” futures contract (same underlying asset).
The call and put options should have the same maturity and same strike price. You need to open and close the long positions in call and put options simultaneously. Your goal is to execute this trading strategy and take records of your transactions.
You need to use screenshots to show your transactions and performance. Identify the underlying asset, strike price, maturity, and transaction time of option contracts. Explain why you have gains (or losses) from your transactions.