A put-on gold is struck at $1900. What happens if you exercise when the futures price is

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A put-on gold is struck at $1900. What happens if you exercise when the futures price is $1877 and the futures contract settles at $1879?

How much money will you make? (Hint: there are two possible strategies here, with different profits.)

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Jun 12, 2023 08:08 AM

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A put-on gold is struck at $1900. What happens if you exercise when the futures price is

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Scenario 1 Exercise the put option when the futures price is 1877 In this scenario if you exercise t... View the full answer

Microeconomics An Intuitive Approach with Calculus

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