You believe that oil prices will be rising more than expected and that rising prices will result in lower earnings for industrial companies that use a lot of petroleum-related products in their operations. You also believe that the effects on this sector will be magnified because consumer demand will fall as oil prices rise. You locate an exchange-traded fund, XLB, that represents a basket of industrial companies. You dont want to short the ETF because you dont have enough margin in your account. XLB is currently trading at $23. You decide to buy a put option (100 shares) with a strike price of $24, priced at $1.20. It turns out that your are correct. At expiration, XLB is trading at $20. Calculate your profit. XLB: Materials$23.00 Calls Puts Strike Expiration Price Strike Expiration Price $20 November $0.25 $20 November $1.55 $24 November $0.25 $24 November $1.20