The current barrel of oil price is equal to 47.23 USD/barrel. We expect that the price will
Fantastic news! We've Found the answer you've been seeking!
Question:
The current barrel of oil price is equal to 47.23 USD/barrel. We expect that the price will decrease to 46.89 USD/barrel. The bank offers call and put option with strike price equal to 47.07 USD/barrel. The option premium is equal to 0.12 USD/barrel. The one option contract contains 100 barrels. Investor has 6 000 USD. How many and what options will you purchase? What will be result of the operation if your expectations will prove to be true?
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date: