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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 $0.50/lb and variable cost of $0.40/lb. The 1-year forward price of copper is $1/lb. The 1-year continuously compounded interest rate is 6%. If XYZ buys a one-year put option with a strike of $1.00 and a premium of $0.0376/lb to hedge its copper production, what is its estimated profit per pound of copper 1 year from now if copper price in 1 year is $1.00/lb?
  

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