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Please see attached document for question as the chart can not be copy and paste into this document Suppose you purchase the September call option
Please see attached document for question as the chart can not be copy and paste into this document
Suppose you purchase the September call option on 1000 barrels of crude oil futures with a strike price of $32.50. Note: Please round your answers to two decimal places. a) How much does your option cost per barrel of oil? Cost per barrel = $ b) What is the total cost for 1000 barrels? Total cost = $ c) Suppose the price of oil futures is $30 per barrel at expiration of the option contract. What is your net profit or loss from this position for 1000 barrels? Ft = $30:(select answer- PROFIT OR LOSS)of $ d) What if oil futures prices are $34 per barrel at expiration for 1000 barrels? Ft = $34:(select answer PROFIT OR LOSS)of $
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