Question: HELP PLEASE!!! FAST!! On 4 - 1 2 - 2 5 , Joe farmer is concerned the price of corn might go lower. He decides
HELP PLEASE!!! FAST!!
On Joe farmer is concerned the price of corn might go lower. He decides to protect the price of his corn by using a put. At the time December Corn is $ and the basis at the local elevator is Z The put he buys is a Dec $ for cents per bushel.
On Joe harvests his corn and takes it to the local elevator and sells it At that same time, he offsets his put. At the time, Dec Corn is $ The basis is Z The time value of the put is cents. Fill in the table and show all your work. Date Cash Futures Basis Put Option Call Option
What is the Minimum Selling Price?
What is the Actual Selling Price?
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