What will be your net profit or loss on the protective


Suppose you bought 50,000 barrels of crude oil at the cash price of $65 per barrel. To protect your inventory, you have constructed protective put contracts using July put option on WTI futures and paid a premium of $2.20 per barrel. What will be your net profit or loss on the protective put on 50,000 barrels for the following possible futures prices of at the expiration date in July?

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