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6. You decided to hedge the risk of wheat prices with an option. You expected that wheat prices will rise within the next few months

6. You decided to hedge the risk of wheat prices with an option. You expected that wheat prices will rise within the next few months because of the shortage of supply caused by drought. The strike price of the option is $310 with a premium of $10. If your expectations were right, and wheat is going for $350 in the market, what is your profit after premium?

A. Buy a put option, the option will be at the money, the payoff after premium is $40

B. Sell a call option, the option will be out of the money, the payoff after premium is $40

C. Sell a call option, the option will be in the money, the payoff after premium is $30

D. Buy a call option, the option will be in the money, the payoff after premium is $30

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