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You believe that oil prices will be rising more than expected and that rising prices will result in lower earnings for industrial companies that use a lot of petroleum-related products in their operations. You also believe that the effects on this sector will be magnified because consumer demand will fall as oil prices rise. You locate an exchange-traded fund, XLB, that represents a basket of industrial companies. You don’t want to short the ETF because you don’t have enough margin in your account. XLB is currently trading at $23. You decide to buy a put option expiration, XLB is trading at $20. Calculate your profit.,XLB: Materials–$23.00,Calls Puts,Strike Expiration Price Strike Expiration Price,$20 November $.25 $20 November $1.55,$24 November $.25 $24 November $1.20

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