Multiple Choice
Corn call options with a $1.75 strike price are trading for a $0.14 premium.Farmer Jayne decides to hedge her 20,000 bushels of corn by selling short call options.Six-month interest rates are 4.0% and she plans to close her position in 6 months.What is the total premium she will earn on her short position?
A) $2,800
B) $2,912
C) $800
D) $1,600
Correct Answer:
Verified
Correct Answer:
Verified
Q1: When selecting among various put options with
Q2: Which of the following situations does NOT
Q3: Why are synthetics created and/or calculated when
Q5: Two 6-month corn put options are available.The
Q6: Explain the relationship between options costs and
Q7: KidCo bought forward contracts on 20,000 bushels
Q8: Corn call options with a $1.70 strike
Q9: From a strictly conceptual perspective,why would any
Q10: Given a 25% chance of a 600,000
Q11: Farmer Jayne bought a $1.70 strike put