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Suppose you wrote 10 call option contracts on WTI

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Question

Suppose you wrote 10 call option contracts on WTI futures hoping that the price of crude oil will not increase in the near future. You received $3.45 per barrel premium for a strike price of $82.50 per barrel. What will be your net profit or loss on all 10 contracts if WTI futures contract trades at the following possible prices at expiration? $75, $82, $85, $89, and $92.

 

Paper#33334 | Written in 18-Jul-2015

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