The current barrel of oil price is equal to 47.23 USD/barrel. We expect that the price will decrease to 46.89 USD/barrel. The bank offers call and put option with strike price equal to 47.07 USD/barrel. The option premium is equal to 0.12 USD/barrel. The one option contract contains 100 barrels. Investor has 6 000 USD. How many and what options will you purchase? What will be result of the operation if your expectations will prove to be true? 

Answer rating: 100% (QA)

Based on your expectation of the oil price decreasing purchasing a put option would be the optimal s... View the full answer