Compute the estimate profit for copper prices

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XYZ mines copper, with a cost of $0.9/lb. The annual interest rate is 6%. The price of $0.95-strike put on copper is $0.0178. The price of $1-strike call is $0.0376. Compute the estimate profit for copper prices of $0, 925, $0, 975 and $1, 025 in 1 year if XYZ buys collars composing of the aforementioned put and call.

Reference no: EM131308105

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Compute the estimate profit for copper prices : XYZ mines copper, with a cost of $0.9/lb. The annual interest rate is 6%. The price of $0.95-strike put on copper is $0.0178. The price of $1-strike call is $0.0376. Compute the estimate profit for copper prices of $0, 925, $0, 975 and $1, 025 in 1 y..
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