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XYZ Co . mines copper, with fixed costs of $ 0 . 5 0 / lb and variable cost of $ 0 . 4 0
XYZ Co mines copper, with fixed costs of $lb and variable cost of $lb The year forward price of copper is $lb The year continuously compounded interest rate is If XYZ buys a oneyear put option with a strike of $ and a premium of $lb to hedge its copper production, what is its estimated profit per pound of copper year from now if copper price in year is $lb
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