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1. A farmer plans to produce 100,000 bushels of corn for sale in 6 months. His total cost of production will be 1.43 per bushel.

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1. A farmer plans to produce 100,000 bushels of corn for sale in 6 months. His total cost of production will be 1.43 per bushel. He will hedge by buying 100,000 1.50 strike puts priced at 0.11 and selling 100,000 1.55 strike calls priced at 0.10. The continuously annual interest rate is 3%. What is his profit range in 6 months

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