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You promise to the counterparty a payment, equal to the difference between $100 and spot price of oil if the spot price exceeds $100. On
You promise to the counterparty a payment, equal to the difference between $100 and spot price of oil if the spot price exceeds $100. On the other hand, the counterparty promises to pay you the difference between $100 and spot price of oil if the spot price declines below $100. What arrangement have you made? a. You bought a call option b. You sold a call option c. You bought a swap d. You sold a swap
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