Call

Call

Call

Put

Put

Put

Apr

May

Jun

Apr

May

Jun

540

16.70

17.40

17.70

180

.80

.90

550

9.10

9.90

10.20

5.10

5.30

-5.40

1)Alpha company is supposed to deliver 200 ounces of gold to the market in April. The

company needs to hedge the position at the 550-exercise price. How much will the company

receive in total, including the option premium, for the 200 ounces of gold if the market price o

gold is $552 in April? (Gold - 100 troy oz.; $ per troy Qz.)

2) What nosition has been taken by the company? When would the company have a loss/gain