Question: On 4 - 1 2 - 2 5 , Joe farmer is concerned the price of corn might go lower, but he also wants some

On 4-12-25, Joe farmer is concerned the price of corn might go lower, but he also wants some upside protection in case the market goes higher later. He decides to protect his corn by doing a HTA contract at the local elevator and buying a Dec 20254.60 call. At the time, Dec 2025 Corn is $4.50 and the basis at the local elevator is -.20 Z . The Dec 20254.60 call is worth 30.
On 10-1-25, Joe harvests his corn and takes it to the local elevator and applies against his HTA contract and sets the basis. At that same time, he offsets his call. At the time, Dec 2025 Corn is $4.80. The basis is -.25 Z . The time value of the Dec 20254.60 Call is 5 cents.
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What is the Minimum Selling Price? What is the Actual Selling Price?
On 4 - 1 2 - 2 5 , Joe farmer is concerned the

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