Question
Suppose CDE mines copper with fixed costs of $0.5/lb and variable costs of $0.4/lb. The 1 year forward price for copper is $1/lb. Assume the
Suppose CDE mines copper with fixed costs of $0.5/lb and variable costs of $0.4/lb. The 1 year forward price for copper is $1/lb. Assume the continuously compounded interest rate is 6%, If CDE decides to buy a $0.95 strike put option for $0.0178, what is its profit 1 year from now, per pound of copper, if the price of copper in one year is $0.9, or $1.0, or $1.1?
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The Emerald Handbook On Cryptoassets Investment Opportunities And Challenges
Authors: H. Kent Baker, Hugo Benedetti, Ehsan Nikbakht, Sean Stein Smith
1st Edition
1804553212, 978-1804553213
