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 4-12-25, 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 2025 Corn is $4.20, and the basis at the local elevator is -.25 Z . The put he buys is a Dec 2025 $4.10 for 25 cents per bushel.
On 10-14-25, 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 2025 Corn is $4.50. The basis is -.30 Z . The time value of the put is 5 cents. Fill in the table and show all your work. Date Cash Futures Basis Put Option Call Option 4-12-25-.2510-14-25-.30
What is the Minimum Selling Price?
What is the Actual Selling Price? |
HELP PLEASE!!! FAST!! On 4 - 1 2 - 2 5 , Joe

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