Question 1 what are the answers to 9a and be if on the day, Ask an Expert

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Question :

1. What are the answers to 9a and be if on the day the option expires, the price of oil is $36.25 per barrel?

2. A firm owns a put option on 10,000 barrels of oil with a strike price of $37.50 per barrel.

a. Does the firm exercise the option if on the day the option expires the price of oil is $40 per barrel?

b. What is the cash flow on the day the option expires if the price of oil is $40 per barrel?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92748835

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