Question 2 The Jan 23 Class III milk futures are trading at $19.05/cwt. An 19.50 Jan 23 Class III milk put is trading at $1.22/cwt. a. Is the 19.50 Jan 23 Class III milk put in or out of the money when the Jan 23 Class III milk futures are trading at $19.05/cwt? (5 points) b. How much is the intrinsic value on the 19.50 Jan 23 Class III milk put when the Jan 23 Class III milk futures are trading at $19.05/cwt? (5 points) c. Suppose the price of the Jan 23 Class III milk futures increases to $19.30. The premium on the 13.50 Jan 22 Class III milk put will change. Will it increase or decrease? Why? (10 points) d. Suppose you offset your long 19.50 Jan 23 Class III milk put. When you offset the premium on the 19.50 Jan 23 Class III milk put is $0.93. Calculate the gain/loss on your call. Indicate whether this amount is a gain or a loss (5 points)