On July 1, the December oil futures is trading at $94. On that date, Tom longs...
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On July 1, the December oil futures is trading at $94. On that date, Tom longs one futures and also bought a December oil call option with strike price 100 for $5. On expiration date, the December futures price rose to 102. a) What is his profit on his futures position by expiration date? b) What is his profit on his call position by expiration date? On July 1, the December oil futures is trading at $94. On that date, Tom longs one futures and also bought a December oil call option with strike price 100 for $5. On expiration date, the December futures price rose to 102. a) What is his profit on his futures position by expiration date? b) What is his profit on his call position by expiration date?
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Lets calculate Toms profit on both his futures position and his call option position by the expirati... View the full answer
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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