Question
8. Short Hedging with Options on Futures (Futures decrease) (5 pts) Today: Cash wheat at $5.00; July futures at $5.30; Buy July $5.40 put at
8. Short Hedging with Options on Futures (Futures decrease) (5 pts)
Today: Cash wheat at $5.00; July futures at $5.30; Buy July $5.40 put at 25 cents
Later: Sell cash wheat at $4.50; July futures at $4.80; Sell July $5.40 put at 72 cents
What is the net selling price of the wheat? (Show work by answering each of the items below)
Cash sales price: _________________
+/- Option premium gain or loss: _________________
Net selling price: _________________
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker
4th Edition
1284029867, 978-1284029864
