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:

Conflict Theory

Examines how groups disagree, struggle for power, and compete for scarce resources such as wealth and power.

Structural-functionalism

A theoretical framework in sociology that sees society as a complex system whose parts work together to promote solidarity and stability.

Exchange Theory

A social psychological perspective that posits social behavior is the result of an exchange process to maximize benefits and minimize costs.

Symbolic Interactionism

A sociological perspective emphasizing how individuals interpret and act upon social symbols, thus creating shared meanings within human interactions.