Question
Assume soybean mean is to be sold in September. Current at-the-money strike price $180.00 per ton, and premium of $4.00 per ton. The expected basis
Assume soybean mean is to be sold in September. Current at-the-money strike price $180.00 per ton, and premium of $4.00 per ton. The expected basis is $2.00. The cost of hedging is $0.84 per ton. Estimate the price for cash soybean meal by purchasing a call option. Is this price a maximum or minimum? Why?
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Affordable Housing Finance
Authors: K. Hawtrey
2009th Edition
0230555187, 978-0230555181
