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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Definitions:

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

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Refers to the act of compensating someone for an expense they have incurred.

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Systems that use radio-frequency identification for tracking and identifying tags attached to objects using electromagnetic fields.