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5. [5 marks] CornGrower is going to sell corn in one year. In order to lock in a fixed selling price, CornGrower buys a put

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5. [5 marks] CornGrower is going to sell corn in one year. In order to lock in a fixed selling price, CornGrower buys a put option and sells a call option on each bushel, each with the same strike price and the same one-year expiration date. The current price of corn is $3.59 per bushel, and the net premium that CornGrower pays now to lock in the future price is $0.10 per bushel. The continuously compounded risk-free interest rate is 4%. Calculate the fixed selling price per bushel one year from now. A) 3.54 B) 3.64 C) 3.74 E) None of these D) 3.84

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