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Farmer Jayne Bought a $1

Question 11

Multiple Choice

Farmer Jayne bought a $1.70 strike put option for $0.11 and sold a $1.75 strike call option for a premium of $0.14.Her total costs are $1.65 per bushel and interest rates are 4.0% over this period.What is the floor in her strategy assuming a 20,000-bushel crop?


A) $624
B) $1,624
C) $2,624
D) $3,624

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