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4G li. 8:11 moodle1.du.edu.om Dhofar Beverages Company (DBC) has made an option contract with one of its customers, which settles a put option for drinking

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4G li. 8:11 moodle1.du.edu.om Dhofar Beverages Company (DBC) has made an option contract with one of its customers, which settles a put option for drinking water trading. Market price of drinking water is 38 OMR per ton, now. The contract involves put option of 600 tons of drinking water at a rate of 40 OMR per ton for 3 months later. What would be the best decision for DBC if actual market price of drinking water is 41 OMR, at the end of contract. Select one: a. Put option because, DBC makes 1800 OMR profit O b. No profit or loss, DBC is indifferent O c. Put option because, DBC makes 600 OMR profit Od. Do not put option because, DBC makes 600 OMR loss otherwise Previous page Next page

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