Question: A trader buys both a call option and a put option for natural gas at the same strike price of ( q =
A trader buys both a call option and a put option for natural gas at the same strike price of q$ per MMBtu. Suppose that the market price P can be realized at two values $ and $ with respective probabilities of and a Find the future value of the call option for the trader. b Find the future value of the put option for the trader. c Is a trader buying both of the above options a riskaverse or riskseeking trader, why?
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