General Mills Bought September Call Options for Wheat with an Exercise

question 80

Multiple Choice

General Mills bought September call options for wheat with an exercise price of $2.80 at a price of $0.10 per bushel.If the price of wheat at the expiration is $2.90, what is the cost of one bushel of wheat for General Mills?

• A)$2.70
• B)$2.80
• C)$2.90
• D)$3.00

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Definitions:

Psychoanalysis

A therapeutic approach and theory developed by Sigmund Freud that emphasizes exploring unconscious conflicts and emotional issues.

Unconscious Conflicts

Deep-seated internal conflicts often stemming from childhood that influence behaviors and thoughts, unseen by the conscious mind.

Hostility

An antagonistic attitude or action; an unfriendly or warlike disposition.

Transference

The redirection of feelings and desires, especially those unconsciously retained from childhood, toward a new object, often a therapist during psychoanalysis.