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Please show how to solve this 5. Trader A enters into 10 futures contracts to sell Natural Gas for $2.584 per mmBtu in June of
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5. Trader A enters into 10 futures contracts to sell Natural Gas for $2.584 per mmBtu in June of 2019. Trader B buys 10 put options to sell Natural Gas for $2.570 in June of 2019. The price of the option was $0.18 per mmBtu, Calculate for both traders total profit/loss from the position for the following possible outcomes in June (NG price $ per mmBtu in June of 2019): Trader A. Total P&L. + $100,000 0 - $100,000 Trader B. Total P&L. +$80,600 $18,000 - $18,000 $18,000 June 2019 NG Price, er mmBtu 1.584 $2.584 $3.584 $4.584 $200,000Step by Step Solution
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