Month 3: USD 101.90
A. USD 405,000
B. USD 510,000
C. USD 720,000
D. USD 1,230,000
Answer:B
Month 3: USD 101.90
A. USD 405,000 B. USD 510,000 C. USD 720,000 D. USD 1,230,000
Explanation: The correct answer is b. By selling a cap, if the settlement price of crude oil is above the strike