December 2014

1:

If the company has acquired three months' option to buy 3000 barrels of oil, at an exercise price of $ 50 and if the premium is $ 0.60 per barrel and it at the time of option expiry oil price is $ 52 per barrel, the net pay-off to the company will be

A.

$ 1800

B.

$ 4200

C.

$ 6000

D.

$ 7800

 

Answer : B

Explanation :

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Option: A

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