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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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