THE VARABLES ARE

X= ETE Y= OC Z= C

Position= Long Position= Long

X= 272 Y= 51 Z=1

II. Answer TRUE or FALSE and JUSTIFY STATEMENT ANSWER 1. You are having a hedging strategy and you are ALFA on the spot market. You benefit from a weakening basis. 2. All else being equal, an option with Y days remaining until expiration has more time value than an option with 80 days remaining until expiration