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What is the premium (price) for an oil contract, if the following conditions are present?

What is the premium (price) for an oil contract, if the following conditions are present?

LIBOR rate of 5%

Out of the money cost of $3

Strike price is $4

In the money price of $1

Speculative premium of $2

A.

$3

B.

$5.25

C.

$7

D.

$7.35

AFP CTP Summary

  • Vendor: AFP
  • Product: CTP
  • Update on: Oct 21, 2025
  • Questions: 1076
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