Question: 8. Short Hedging with Options on Futures (Futures decrease) (5 pts) Today: Cash wheat at $5.00; July futures at $5.30; Buy July $5.40 put at

8. Short Hedging with Options on Futures (Futures decrease) (5 pts)

Today: Cash wheat at $5.00; July futures at $5.30; Buy July $5.40 put at 25 cents

Later: Sell cash wheat at $4.50; July futures at $4.80; Sell July $5.40 put at 72 cents

What is the net selling price of the wheat? (Show work by answering each of the items below)

Cash sales price: _________________

+/- Option premium gain or loss: _________________

Net selling price: _________________

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