Compute the net gain or loss

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Question - Mergers and Acquisitions, Risk Management Through Derivatives - ABC Corporation acquired a call option for 500 tons of oil for a strike price of P110,000 per ton to be exercised three months from now. The broker requires an initial margin of 30%. On the expiry date of the option, the market value of a ton of oil is P115,000. Compute the net gain or (loss).

Reference no: EM133089615

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