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25. Real Options. Price support systems for various agricultural products have allowed farmers to sell their crops to the government for a specified support price

25. Real Options. Price support systems for various agricultural products have allowed farmers to sell their crops to the government for a specified "support price" of, say, $5 a bushel. (L023-3)

a. Has the government given the farmers a call or a put option?

b. What is the exercise price of this option?

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