Suppose you are the CFO of an oil refiner and you wish to hedge your future production price risk of crude oil using options. Your company will produce a total of 7.5 million barrels of oil over the next three months.  The six-month crude oil futures contract is trading at $57/bbl. The price of the three-month 54 put is $3.25/bbl. The price of the three-month 61 call is $3.05/bbl.   Instead of selling futures contracts at $57 to hedge your risk, you decide that you will sell the 61 call options AND purchase the 54 put options to hedge your price risk. Futures and option contracts on crude oil represent 1,000 bbl./contract. a. How many contracts of each option do you need to sell/purchase? (Round answer to zero decimals. Do not round intermediate calculations) [a] b. What is your total cash outlay? (Round answer to zero decimals. Do not round intermediate calculations) [b] c. What is your breakeven point in terms of the oil settlement price? (Round answer to 2 decimal places. Do not round intermediate calculations) [c] d. What is your maximum loss (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [d] e. What is your maximum gain (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [e] f. If the price of oil settles at $63 in four months, what is your net selling price (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [f] g. If the price of oil settles at $57 in four months, what is your net selling price (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [g]

Suppose you are the CFO of an oil refiner and you wish to hedge your future purchase price risk of crude oil using options. Your company will need to purchase a total of 10.7 million barrels of oil in next four months.   The six-month crude oil futures contract is trading at $41/bbl. The price of the four-month 39 put is $2.35/bbl. The price of the four-month 42 call is $2.81/bbl.   Instead of buying futures contracts at $41 to hedge your risk, you decide that you will purchase the 42 call options to hedge your price risk. Futures and option contracts on crude oil represent 1,000 bbl./contract. a) How many contracts do you need to purchase? (Round answer to zero decimals. Do not round intermediate calculations) [a] b) What is your total cash outlay? (Round answer to zero decimal places. Do not round intermediate calculations) [b] c) What is your breakeven point in terms of the oil settlement price? (Round answer to 2 decimal places. Do not round intermediate calculations) [c] d) What is your maximum loss (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [d] e) What is your maximum gain (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [e] f) If the price of oil settles at $47 in four months, what is your net purchase price (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [f] g.) If the price of oil settles at $38 in four months, what is your net purchase price (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [g]

Suppose you are the CFO of an oil refiner and you wish to hedge your future production price risk of crude oil using options. Your company will produce a total of 10.7 million barrels of oil over the next three months.  The six-month crude oil futures contract is trading at $41/bbl. The price of the three-month 39 put is $2.35/bbl. The price of the three-month 42 call is $2.81/bbl.   Instead of selling futures contracts at $41 to hedge your risk, you decide that you will sell the 42 call options AND purchase the 39 put options to hedge your price risk. Futures and option contracts on crude oil represent 1,000 bbl./contract. a. How many contracts of each option do you need to sell/purchase? (Round answer to zero decimals. Do not round intermediate calculations) [a] b. What is your total cash outlay? (Round answer to zero decimals. Do not round intermediate calculations) [b] c. What is your breakeven point in terms of the oil settlement price? (Round answer to 2 decimal places. Do not round intermediate calculations) [c] d. What is your maximum loss (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [d] e. What is your maximum gain (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [e] f. If the price of oil settles at $47 in four months, what is your net selling price (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [f] g. If the price of oil settles at $38 in four months, what is your net selling price (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [g]

Suppose you are the CFO of an oil refiner and you wish to hedge your future production price risk of crude oil using options. Your company will produce a total of 5.2 million barrels of oil over the next three months.  The six-month crude oil futures contract is trading at $72/bbl. The price of the three-month 65 put is $4.20/bbl. The price of the three-month 76 call is $3.95/bbl.   Instead of selling futures contracts at $72 to hedge your risk, you decide that you will sell the 76 call options AND purchase the 65 put options to hedge your price risk. Futures and option contracts on crude oil represent 1,000 bbl./contract. a. How many contracts of each option do you need to sell/purchase? (Round answer to zero decimals. Do not round intermediate calculations) [a] b. What is your total cash outlay? (Round answer to zero decimals. Do not round intermediate calculations) [b] c. What is your breakeven point in terms of the oil settlement price? (Round answer to 2 decimal places. Do not round intermediate calculations) [c] d. What is your maximum loss (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [d] e. What is your maximum gain (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [e] f. If the price of oil settles at $80 in four months, what is your net selling price (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [f] g. If the price of oil settles at $61 in four months, what is your net selling price (in $/bbl)? (Round answer to 2 decimal places. Do not round intermediate calculations) [g]

An older adult recovering from pneumonia tells the nurse, “I still don’t feel healthy because I can’t get dressed or make meals on my own yet.” Based on this patient’s perspective, which model of health is the patient using to define their health status?

Which of the following is a neurodevelopmental cause of schizophrenia?

The nurse is assessing a client who has a radial pulse of 55 beats per minute. What action should the nurse take first?

Which of the following is a penicillin? 

Which of the following is a correct statement about the failed parenting theory of Autism Spectrum Disorder?

Based on the DSM diagnostic criteria, which of the following disorders must show symptoms present before adulthood to be diagnosed?