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Just checking to see if I got these right, thanks in advance.
.

Question 1. The May 20 corn futures are trading at 4012. A 390 May 20 com call is trading at 230. a. Is the 390 May 20 call

Question 2 The May 20 Class III milk futures are trading at $16.98. A 17.50 May 20 Class III milk put is trading at $0.90 a.

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Answer #1

Question 1 part C - Since it is in the money and has an intrinsic value, the following rule applies - As the price of a stock increases, the premium on call increases.

For put, the premium will decrease as the stock prices increases.

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