Your firm will be buying 74,800 barrels of oil in January. Your firm is concerned that oil prices may increase by January. Call options are available with a strike price of $58.50. The cost of the call option is $10.89. Put options are available with a strike price of $58.50. The cost of the put option is $8.43. If the price of oil in January is $49.60, what is the payoff on the option contracts the firm entered into to hedge its risk? Your answer should be accurate to two decimal places. If you believe the answer is zero it should be recorded as 0.00.

Answer: 0.00 How do I get it?