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What would be the investor gain or loss

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Reference no: EM132918535

Problem a) An investor buys a put option with a strike price of $45 for $6. What is the investor's maximum gain and maximum loss?

Problem b) In January, an investor enters into a long futures contract to buy 100 oz of gold at $1,860 per oz in April. What would be the investor's gain or loss if the price of gold is as follows in April?

i) $1,950 per oz
ii) $1,750 per oz

Reference no: EM132918535

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