On 1 January 2016, an optimistic energy trader purchased a 90 day Asian (arithmetic) call option on crude oil futures. The option has an exercise price of $35. The of crude oil futures at the 30th, 60th and 90th day of the option was $30.65, $36.90, and $38.49. What is the payoff to the option?

Answer rating: 100% (QA)

To calculate the payoff to the option we first need to determine the average price of t... View the full answer