Question: Call Call Call Put Put Put Apr May Jun Apr May Jun 540 16.70 17.40 17.70 180 .80 .90 550 9.10 9.90 10.20 5.10 5.30

Call

Put

Apr

May

Jun

Apr

May

Jun

540

16.70

17.40

17.70

180

.80

.90

550

9.10

9.90

10.20

5.10

5.30

-5.40

1)Alpha company is supposed to deliver 200 ounces of gold to the market in April. The

company needs to hedge the position at the 550-exercise price. How much will the company

receive in total, including the option premium, for the 200 ounces of gold if the market price o

gold is $552 in April? (Gold - 100 troy oz.; $ per troy Qz.)

2) What nosition has been taken by the company? When would the company have a loss/gain

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