Question: DO NOT COPY AND PASTE ANY ANSWER FROM OTHER CHEGG POSTS Please show all work so I can learn. Thanks! ____________________________ For each ton of

DO NOT COPY AND PASTE ANY ANSWER FROM OTHER CHEGG POSTS

Please show all work so I can learn. Thanks!

____________________________

For each ton of a certain type of rice commodity, the four-year forward price is 300. A four-year 400-strike European call option costs 110.

The continuously compounded risk-free interest rate is 6.5%.

Calculate the cost of a four-year 400-strike European put option for this rice commodity.

____________________________

A) 10.00

B) 32.89

C) 118.42

D) 187.11

E) 210.00

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