Use the NYMEX Calls and Puts on Crude Oil Handout that are provided as a handout with this exam. BP decides to hedge the cost of oil that they buy for their refining operation using an option. They want the most they pay to be $70 per barrel for their refinery crude oil purchased (before taking into account the premium). If crude oil prices fall to $50 per barrel, what will be their total cost of crude oil per barrel based on purchasing the crude oil in the cash market price and the impact of the hedge. $63.37 per barrel $60.00 per barrel $100.00 per barrel $50.67 per barrel "Prior Settle" is the option premium. The strike price is shown as in Ch.16 with the decimal left out. Place a decimal in the middle to have $/barrel (i.e., the first strike place is 55.50). All $ values in the table are per barrel. CALL AND PUT OPTIONS FOR CRUDE OIL ON MAY 4, 2018 THE SPOT PRICE FOR CRUDE OIL ON THIS DAY WAS $69.78 PER BARREL CALL OPTIONS PUT OPTIONS She Price Volume Updated Volume Prior Battle Pnor Settle 0 0 12.95 5550 0.01 60 . 1243 5600 001 85 o 11.94 5650 0.01 B7 0 11.44 5700 0.01 390 36 10.94 5750 002 348 13 10.45 5800 002 170 11 9.95 5850 0.00 473 2 9.46 5900 0.03 335 0 8.96 5950 0104 1,007 54:47:56 CT 4-May 10 15:20:21 CT 14-May 1 1647:14 or 4-May-16 14:47:14 CT 4.May 18 144714 CT 4-May-18 14:48:47 May 18 14 47.14 CT 4. May 10 14:51:30 CT 4-May 10 15.02:41 CT 4-May-18 14 59:12 May 18 145343 . 4. May 10 14:47:14 CT 4-May10 15:14 21 CT 4-May-10 15.12.05 May 18 15.12.13 CT 4-May-10 14:59.00 CT 4-May-18 15:1222 CT 4-May-18 1459.12 CT 4-May-1 41 47 6000 0.05 1341 0 7.90 8050 005 1447 2 7:49 6100 0.06 856 0 7 6150 0.00 851 0 652 6200 0.00 1.288 0 0 505 6250 0.11 766 77 5:55 6300 0.13 1051 . 508 6350 0.15 1375 7 4.61 6400 0.10 150 3 16 6450 0.23 100 3.71 6500 10 3.28 6550 0.35 82 287 6800 0.44 * 34 2.48 6650 0.50 514 213 6700 128 1.8 6750 0.87 16 727 151 6800 100 543 1.25 6650 132 1,263 1.02 6900 159 14 S 55 100 cm 10 15:19:22 8.847 4-May-18 1447.14 1.110 4 May-18 14:52:58 3.224 4-May- 14:47:14 1.654 4-May-18 15:14:11 2744 -18 15:20:21 1662 4-May-18 14.4835 3.159 May-ts 14:47:14 852 4-May-18 14:51:50 2.113 4-May-10 15 20-24 272 4HNo18 14-5621 950 CT 4-May-18 14:50:09 52 4 May 18 14. 47:14 17 May-1 14.47.14 5 4-May-18 14:47:14 3 4-May-13 147 14 0 4-May-18 15.-17.47 4 May-18 15.45.00 0 3-May-18 14547:14 0 CT 4--18 658 .. 6950 19 4.806 0.67 7000 224 795 0.54 7050 251 1,348 0.43 7100 3 one 035 7150 141 3.976 0.28 7200 28 1,837 0.22 7250 2417 0.18 7300 475 4 366 0.15 7350 5 Ye 1 Ass 0.12 7400 5.60 3 750 0,1 7450 8.17 3,398 0.09 7500 6.65 0.07 7550 7.14 0 396 0.05 7600 7.83 0 101 0.05 7850 8.12 0 607 0.04 7700 8.61 0 253 0.04 7750 91 1,388 0.03 7800 10.00 14:47:14 4M18 14.47.14 4 May 10 14:47:14 4-May-18 14:47:14 4 May 10 14:47:14 4-10 14.47 14 May-10 1447.14 4 May-18 16:45:00 -May-18 14.67:14 4-May-18 14-47.14 CT May-10 1447.14 4 144714 4- 14:47:14 4 -18 14:47:14 CT 4 May 18 14:47:14 HMay-18 14:47:14 May-10 14 47.14 4-May-18 23 0.03 7850 100 0 230 0.02 7900 10.50 7 724 0.02 7950 11.09 9 1,529 0.02 1158 8 3 3 0.02 8050 1208 : 0 405 0.01 8100 1258 22 0.01 8150 13.08 0 1 001 8200 1350 0 1 00 8250 HOT 125 0.01 8300 1457 397 ! 050 15.55 CT 4 16.45.00 3 May 18 14. 47-14 CT 4--1 34 001 1557