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Question
Corn call options with a $1.75 strike price are trading for a $0.14 premium. Farmer Jayne decides to hedge her 20,000 bushels of corn by selling short call options. Six-month interest rates are 4.0% and she plans to close her position in 6 months. What is the total premium she will earn on her short position?A) $2,800
B) $2,912
C) $800
D) $1,600
Answer
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