General Mills Bought September Call Options for Wheat with an Exercise

question 61

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 Cost of one bushel of wheat = $2.90

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Definitions:

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A set of theories and therapeutic techniques related to the study of the unconscious mind, developed by Sigmund Freud, focusing on resolving mental conflicts.

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