Assume you are long the gold future contract. In six months, the price of gold is...
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Assume you are long the gold future contract. In six months, the price of gold is $1300. Spot Price of Gold Future Price in 6 month contract $1200 $1275 You bought a stock for $50 and a put option with a $50 strike (exercise) price. The put option cost $4. If the stock falls to $40 when the put expires: Assume you are long the gold future contract. In six months, the price of gold is $1300. Spot Price of Gold Future Price in 6 month contract $1200 $1275 You bought a stock for $50 and a put option with a $50 strike (exercise) price. The put option cost $4. If the stock falls to $40 when the put expires:
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