What is the payoff from a call option on the cumulative cdd

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Reference no: EM131241275

Suppose that each day during July the minimum temperature is 68° Fahrenheit and the maximum temperature is 82° Fahrenheit.

What is the payoff from a call option on the cumulative CDD during July with a strike of 250 and a payment rate of $5,000 per degree-day?

Reference no: EM131241275

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