Tom holds the following two option contracts on Brent futures: Short one put option with strike

Question:

Tom holds the following two option contracts on Brent futures:

Short one put option with strike price of USD 100.00;

Long one call option with strike price of USD 105.00.

If the options have the same maturity and the current Brent spot price is USD 103.50, what is the value of the combined positions?

a. USD 2.5

b. USD -2.5

c. USD 0

d. USD 5

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Financial Modelling In Commodity Markets

ISBN: 9780367442866

1st Edition

Authors: Viviana Fanelli

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Question Posted: Jun 27, 2024 02:10 AM

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Tom holds the following two option contracts on Brent futures: Short one put option with strike

Question:

Step by Step Answer:

Financial Modelling In Commodity Markets

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