27. (Appendix Question) Pinky Swander buys a call option on a March 5000-bushel soybean futures contract. The

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27. (Appendix Question) Pinky Swander buys a call option on a March 5000-bushel soybean futures contract. The call costs $.50 per bushel and has an exercise price of$5.25 per bushel. If Pinky exercises the option in February at a price of$5.55 per bushel, what is Pinky 's return on investment in the option?

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Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

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