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Title: Farmer Jayne decides to hedge 10,000 bushels of corn by purchasing put options with a strike price ... Post by: elf_fu on Jul 6, 2017 Farmer Jayne decides to hedge 10,000 bushels of corn by purchasing put options with a strike price of $1.80. Six-month interest rates are 4.0% and the total premium on all puts is $1,200. If her total costs are $1.65 per bushel, what is her marginal change in profits if the spot price of corn drops from $1.80 to $1.75 by the time she sells her crop in 6 months?
A) $248 loss B) $0 C) $252 gain D) $1,500 loss Title: Re: Farmer Jayne decides to hedge 10,000 bushels of corn by purchasing put options with a strike ... Post by: phuongha2892 on Jul 6, 2017 Content hidden
Title: Re: Farmer Jayne decides to hedge 10,000 bushels of corn by purchasing put options with a strike ... Post by: Harris Dupre on Oct 4, 2020 Thank you
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