18. You purchase a put option for a July 2004 winter wheat futures contract at a price...

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18. You purchase a put option for a July 2004 winter wheat futures contract at a price (the option premium) of $0.40 per bushel. The strike price for this option is

$4.00 per bushel. If the expected basis in July is $0.25/bushel, what is the minimum expected price you will receive for your wheat by using this option: Show your math.

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