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What is the payoff from a call option on cumulative cdd

Assignment:

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?

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Finance Basics: What is the payoff from a call option on cumulative cdd

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Finance Basics: What is the payoff from a call option on cumulative cdd

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