Happy Jalapenos, LLC has an exclusive contract to supply jalapeno peppers to the organizers of the annual jalapeno eating contest. The contract states that the contest organizers will take delivery of 10, 000 jalapenos in one year at the market price. It will cost Happy Jalapenos 1, 000 to provide 10, 000 jalapenos one year from today(1000 for 10000 jalapenos) and todays market price is $0.12 for one jalapeno(price per jalapeno). The continuously compounded risk-free interest rate is 6%. Happy Jalapenos has decided to hedge as follows: Buy 10, 000 $0.12-strike put options for $84.30 and sell 10, 000 $0.14-strike call options for $74.80. (Both options are one-year European). Happy Jalapenos believes the market price in one year will