(a) What differences exist between an American Put option and European Call option?

(b) In August, a wheat farmer decided to hedge her entire anticipated 1,000 tonne wheat harvest with January wheat futures that were trading at a price of $290 per tonne. In January, the farmer harvested 1,100 tonne of wheat and sold this wheat at auction for $330 per tonne. She then closed out her January wheat futures contracts for $332 per tonne. From this information and using a standard wheat futures contract size of 20 tonne per contract, calculate the overall value of the harvested crop including the profit or loss from futures trading.

(c) On 16 September 2021, Commonwealth Bank of Australia (CBA) shares were trading at $102.00 while the November 2021 CBA Call and Put options with exercise prices of $102.00 were trading at $5.10 and $5.20, respectively. As an options trader, you firmly believe that the share price will decrease dramatically in the near future given the upcoming royal commission into the financial services industry. Given this information and the fact that the standard option contract size is 100 shares per contract, outline an option trading strategy in either the Call or the Put that will profit from a decrease in CBA share price and demonstrate that the strategy is profitable if the price of a CBA share is $110.00 on the options expiry date (i.e. in November 2021).