Question: we some we 1. In the lecture, discuss basic risk management from the producer's perspective. In this problem, discuss the basic risk management from the

we some we 1. In the lecture, discuss basic risk management

we some we 1. In the lecture, discuss basic risk management from the producer's perspective. In this problem, discuss the basic risk management from the buyer's perspective . denote the price of gold be x. Suppose for the buyer the profit function from the gold itself is : 460-X. Now, if besides the gold, the buyer buy a call k= 420, the premium C = 8.77 and 57 option with re 2 Write down the payoff function, profit function, and drow a profit diagram for this strategy ( Gold & call option). ( we some we 1. In the lecture, discuss basic risk management from the producer's perspective. In this problem, discuss the basic risk management from the buyer's perspective . denote the price of gold be x. Suppose for the buyer the profit function from the gold itself is : 460-X. Now, if besides the gold, the buyer buy a call k= 420, the premium C = 8.77 and 57 option with re 2 Write down the payoff function, profit function, and drow a profit diagram for this strategy ( Gold & call option). (

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