Illustrate what will be your net profit or loss

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Q. Suppose you bought 50,000 barrels of crude oil at the cash price of $65 per barrel. To protect your inventory, you have constructed protective put contracts using July put option on WTI futures and paid a premium of $2.20 per barrel. Illustrate what will be your net profit or loss on the protective put on 50,000 barrels for the subsequent possible futures prices of at the expiration date in July?

Reference no: EM13113077

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