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docs.google.com in99-oogle Sheets Finance 499 - Google Docs ut Tools Add-ons Help CRNCO Last edit was 5 minutes ago 12 - BIVA naltext Times New

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docs.google.com in99-oogle Sheets Finance 499 - Google Docs ut Tools Add-ons Help CRNCO Last edit was 5 minutes ago 12 - BIVA naltext Times New OD 1 EE-EE 1 6 1. You are provided the following one-year options prices on the heating oil futures contracts by your bank. You believe that the price of oil will not fall below $2.19 per gallon but you want to hedge if the price were to rise above $2.49 a gallon. You decide to create a collar under which you buy a call option contract at the strike price of $2.49 and sell a put contract at the strike price of $2.19. One contract equals 42,000 gallons of oil. Exercise price Call Put 1 $2.19 0.31 0.25 $2.32 0.22 0.37 $2.49 0.15 0.45 $2.76 0.09 0.62 A. What is the net debt or credit at the time of entering the contracts? B What is your net gain or loss if the price of oil is $2.82 per gallon when the contracts expire? C. What is your net gain or loss if the price of oil is $2.02 per gallon when the contracts expire

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