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he Fournos bakery sells blueberry nuffins for $5 per muffin. The bakery will need to buy 100 kilograms of blueberries in six months to produce

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he "Fournos" bakery sells blueberry nuffins for $5 per muffin. The bakery will need to buy 100 kilograms of blueberries in six months to produce the 2,000 muffins needed for the "Longsdale Festival". Nonblueberry costs total $5,000 in six months' time. Assume that the continuously compounded risk-free interest rate equals 0.04 p.a.. Local farmers are financially sophisticated and can self-finance/borrow money for their operations. Our bakery use one hundred \$1.9-strike, six-month call options (each on a kilogram of blueberries) to hedge against rising prices of blueberries. The calls can be bought now for $0.35 per call. Assume that the market price of a kilogram of blueberries is $2 in six months. What is the profit of the bakery 's hedged portfolio at the end of the six months

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