A Farmer Hedged His Risk by Buying Put Options on Wheat

question 96

Multiple Choice

A farmer hedged his risk by buying put options on wheat with an exercise price of $2.70 at a price of $0.14 per bushel.If the price of wheat at the expiration of the contract is $2.70, what is the net revenue from each bushel of wheat?

• A)$2.56
• B)$2.63
• C)$2.70
• D)$2.84 Revenue from one bushel of wheat = $2.70

Identify and evaluate target market segments for business initiatives.

Interpret SWOT (Strengths, Weaknesses, Opportunities, Threats) analyses and their application in marketing plans.

Analyze market trends and demographic data for strategic planning in business.

Understand the distinction between different types of data (B, I, L, S) in personality assessment.

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