Description of this paper

Suppose you bought 15 put option contracts on Heating Oil

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solution


Question

Suppose you bought 15 put option contracts on Heating Oil futures hoping that the price of heating oil will fall soon. You paid $0.18 per gallon premium for a strike price of $2.40 per gallon. What will be your net profit or loss on all 15 contracts if heating oil futures trades at the following possible prices on expiration? $2.10, $2.20, $2.30, $2.40, and $2.50.

 

Paper#33333 | Written in 18-Jul-2015

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