Question: Consider the same basic facts as in P12-2, but instead of a forward contract Sue purchases put options to sell 300,000 bushels at $5.20 per
| Consider the same basic facts as in P12-2, but instead of a forward contract Sue purchases put options to sell 300,000 | |||||
| bushels at $5.20 per bushel. The options cost $0.05 a bushel. | |||||
| REQUIRED | |||||
| 1 | Determine the economic income of the sales transaction at various price levels at maturity for the option. Consider | ||||
| market prices of $5.00, $5.10, $5.20, $5.30, and $5.40. Make a table similar to the Gre copper example | |||||
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