9. Short Hedging with Options on Futures (Futures increase) (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 $5.60; July futures at $5.90; Sell July $5.40 put at $.04

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: _________________