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please help me thank you As a major maker/manufacturer of premium leather hand luggage, you are concemed that leather prices may move beyond theif current
please help me thank you
As a major maker/manufacturer of premium leather hand luggage, you are concemed that leather prices may move beyond theif current level of $30/ pound when you are ready forproduction. Therefore you enterinto the upproprtate option contract. The strike price is fixed at the current spot price at an options price of $5,00 per option. What is the position you take and your profit or loss, if eight months later, leather is selling at the spot market for $38.50 ? long futures, $7.50 Short futures, 54,00 long call. 53.50 Tone cati -55 o0 long futures, 55,00 Step by Step Solution
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