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A cereal company sells Sugar Corns for $3.50 per box. The company will need to buy 15,000 bushels of corn in 6 months to produce

A cereal company sells \Sugar Corns" for $3.50 per box. The company will need to buy

15,000 bushels of corn in 6 months to produce 30,000 boxes of cereal. Non-corn costs

total $45,000. What is the company's profit if they purchase call options at $0.15 per

bushel with a strike price of $2.6? Assume the 6-month interest rate is 4% and the spot

price in 6 months is $2.66 per bushel.

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