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A large ethanol producer in Ft Atkinson, Wisconsin, Corn R Us processes corn into ethanol and sells it to the major oil companies to achieve

A large ethanol producer in Ft Atkinson, Wisconsin, "Corn R Us" processes corn into ethanol and sells it to the major oil companies to achieve the US regulated blend for their gas. "Corn R Us" needs 100,000 bushels of corn a week to produce the ethanol it is under contract to deliver.Two old farmers run "Corn R Us" and they know how volatile the price of corn can be, especially from June through November.For the corn in that last week of November they have bought call options with a strike price of $5.50 per bushel, for 100,000 bushels at a cost of $18,400 including commission and fees.In the third week of November they were able to purchase 100,000 bushels on the open market for $5.00 a bushel.What do they do?What is their total cost including all hedging and cost of corn.

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