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 and a call. At the time December $2025$ Corn is $$5\mathrm{.}10,$ and the basis at the local elevator is $-\mathrm{.}20$ Z $.$ The put he buys is a Dec $2025$ $$5\mathrm{.}00$ for $25$ cents per bushel. He also sells a Dec $20255\mathrm{.}60$ Call for $10$ cents. The delta value of the put is $50\%$ and the delta value of the call is $15\%.$

On $10-14-25,$ Joe harvests his corn and takes it to the local elevator and sells it$.$ At that same time, he offsets both his options. At the time, Dec $2025$ Corn is $$4\mathrm{.}80.$ The basis is $-\mathrm{.}25$ Z $.$

Fill in the table and show all your work. $(5$ points$)$

What is the Minimum Selling Price? What is the Actual Selling Price?

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 $20254\mathrm{.}50$ call and selling a Dec $20255\mathrm{.}00$ call. At the time, Dec $2025$ Corn is $$4\mathrm{.}40$ and the basis at the local elevator is $-\mathrm{.}20$ Z The Dec $20254\mathrm{.}50$ call is worth $20$ cents and the Dec $20255\mathrm{.}00$ call is worth $10$ cents. The delta value of the $4\mathrm{.}50$ call is $40\%$ and the delta value of the $5\mathrm{.}00$ call is $10\%.$

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 calls. At the time, Dec $2025$ Corn is $$4\mathrm{.}70.$ The basis is $-\mathrm{.}30$ Z $.$

Fill in the table and show all of your work. $(5$ points$)$

What is the Minimum Selling Price? What is the Actual Selling Price?