A rice importer is going to sell rice in one year. In order to lock in a fixed selling price, the importer buys a put option and sells a call option on each ton of rice, each with the same strike...







A rice importer is going to sell rice in one year. In order to lock in a fixed selling price, the importer buys a put option and sells a call option on each ton of rice, each with the same strike price and the same one-year expiration date. The current price of rice is 360 per ton, and the net premium that the importer pays now to lock in the future price is 12 per ton. The continuously compounded risk-free interest rate is 6%. Calculate the fixed selling price per ton of rice one year from now.















Jun 09, 2022
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