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Investor owns 1.000 ounces of gold and considers buying 10 options for a delivery of 100 ounces of gold each for a price 900 USD
Investor owns 1.000 ounces of gold and considers buying 10 options for a delivery of 100 ounces of gold each for a price 900 USD per ounce under which he can sell all ounces of gold he currently holds. Premium for a single option contract is 3.600 USD. What would be a total result of investor if he entered such contracts if market price of gold at a delivery date is 925 USD per ounce?
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