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