Question: In a certain city, the average daily temperature for a week was as follows: Monday: 5 5 F Tuesday: 5 0 F Wednesday: 4 5

In a certain city, the average daily temperature for a week was as follows: Monday: 55F Tuesday: 50F Wednesday: 45F Thursday: 40F Friday: 35F Saturday: 30F Sunday: 25F The base temperature for Heating Degree Days (HDD) is 60F, strike price on a call option is 120 and one degree change on a contract is $500. What will be pay out on this contract? Correct! $20,000 $10,000 $0 $60,000

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