Question
WTI crude oil put premium quotes ($/barrel) Strike price ($/barrel) Oct '21 Dec '21 Mar '22 69.00 1.00 4.20 7.10 69.50 1.10 4.30 7.30 70.00
WTI crude oil put premium quotes ($/barrel)
Strike price ($/barrel) Oct '21 Dec '21 Mar '22
69.00 1.00 4.20 7.10
69.50 1.10 4.30 7.30
70.00 1.20 4.62 7.90
70.50 1.49 4.92 8.20
Current futures prices ($/barrel): Oct 70.01; Dec 69.78; Mar 69.40.
Contract size: 1000 barrels
1.A speculator still holds the put option at the expiry date. Say that the futures price at expiry is $73/barrel, he will:
(i) Do nothing
(ii) Exercise the option
2.) A speculator still holds the put option at the expiry date. Say that the futures price at expiry is $67/barrel, he will:
(i) Do nothing
(ii) Exercise the option
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