Solution-Oil company that deals with oil contracts

Oil company that deals with oil contracts

Reference no: EM131201748

Assume you work for an oil company that deals with oil contracts and you are responsible for constructing those oil contracts. Assume you have an oil contract that has the following characteristics: Zero initial cost and the buyer pays S - F each quarter with a cap of $21.90 - F and a ?oor of $19.90 - F. If oil volatility is 15%, calculate F.

Reference no: EM131201748

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Oil company that deals with oil contracts

Reference no: EM131201748

Reference no: EM131201748

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