Stocktrak Investment Game

Investment Simulation

Lecture # 2

Jan H. Jansen

E-mail: jan.jansen@han.nl

Think global,

act local!

Stocktrak Investmentgame

Welcome!

You are now a millionaire!

€ 1,000,000

Results STOCK-TRAK TO: PROFESSOR JANSEN, JAN

PROFESSOR SUMMARY 2 E X W Rankings as of 05/02/08 For school-professor . . HAN-JAN Rank Account Name(s) Cash MV Long MV Short Equity Trades

1 G50511 Patrick Kilkens 578,071.38 452,216.15 0.00 1,030,287.53 89 2 G50513 Sander Ebbers 1,008,365.53 0.00 0.00 1,008,365.53 10 3 G50512 Peter Scholten 1,006,132.13 0.00 0.00 1,006,132.13 4 4 G50507 Ewout Van De Bunt 1,005,598.48 0.00 0.00 1,005,598.48 2 5 G50500 PROFESSOR ACCT HAN UNIV 1,005,108.69 0.00 0.00 1,005,108.69

0 6 G50506 Etienne Schreuder Etienne Schreuder 1,005,108.69 0.00 0.00 1,005,108.69

0 7 G50599 HAN UNIV INTEREST ONLY 1,005,108.69 0.00 0.00 1,005,108.69

0 8 G50515 Tim Thoonen Thoonen 1,005,108.69 0.00 0.00 1,005,108.69 0

9 G50509 Marlot Van Hattem 1,005,108.69 0.00 0.00 1,005,108.69 0 10 G50516 Tom Uffing 1,004,267.24 0.00 0.00 1,004,267.24 17 11 G50514 Stefan Zuiderwijk 936,742.95 64,696.72 0.00 1,001,439.67 18

12 G50508 Jurrit Van Der Waal 803,512.40 196,898.48 0.00 1,000,410.88 6

13 G50518 Menno Herkes 860,738.54 138,196.56 0.00 998,935.10 2 Beginning Date: 03/03/08 Beginning S&P: 1,330.45 The class average is 1,006,229.23

Ending Date: 06/20/08 Current S&P: 1,413.90 The S&P500 account is 1,062,723.14

Rules of the game Assignments

1. 1 or 2 companies on NYSE / NASDAQ (during the game)2. € / $ exposure 3. Raw material price exposure4. Investment in cash equivalents5. Derivatives

Assessment / Evaluation:– Executive report on the stocktrak game– Presentation & Oral defence

Duration: One semester Weekly Lecture

– Scheduled: mr J. Jansen Weekly Consulting Hour

– Scheduled: mr M. Herkes References

– www.stocktrak.com

Introduction to the game

Executive report– Investment strategy

– Performance

– Reflection (what you have learned!)

Presentation & Oral defence

Evaluation / Assessment

Investment Game & Macroeconomics

Week Topic

1 Introduction

Annual Report KPN (1)

2 Shares

Annual Report KPN (2)

3 Bonds

Annual Report KPN (3)

4 Exchange rates

Annual Report KPN (4)

5 Derivatives: Futures

Annual Report KPN (5)

6 Derivatives: Options

Annual Report benchmarking

? Oral exam

Stocktrak Investment game

Investment strategies

Gambling Speculation (short term: 'BLSH') Investment (long term)

Stocktrak Investment Game

Types of stocks– Shares– Bonds– US Treasury Bonds– Corporate Bonds– Options on shares– Options on currencies– Foreign Currency Futures– Commodity Futures– Index options– Index futures

Stocktrak Investment Game

Calculation of your equity

+ Cash

- Debit balance (= Loan balance)

+ Credit balance (= Short sales proceeds)

+ Market value long positions

- Market value short positions