Question

Imagine that a farmer buys a put . The strike price is
$6. The cost of the option is $0.30. At the maturity of the option, the price of
the underlying futures is $5. The price on the cash market is $4.95.
In this case, what is the realized price.?



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Answer 1

Explanation:

Imagine that a farmer buys a put . The strike price is

$6. The cost of the option is $0.30. At the maturity of the option, the price of

the underlying futures is $5. The price on the cash market is $4.95.