put = call - (underlying - divs e^(-rate time)) + strike e^(-rate time)
(b) $1.64
0.90e^(-0.055 0.25) + 1.20e^(-0.055 0.5) + 1.45e^(-0.055 0.75)
(a) $3.45
2.10/1.052 + 2.20/1.055^2 + 2.35/1.058^3
(a) $5.96
0.5/1.052 + 0.5/1.056^2 + 0.5/1.06^3
(d) $1.34
(1/0.8516)^(1/3)
(b) 5.5%
(0.9036/0.7881 -1)/2
I get an answer of 7.3% which is not listed in the multiple choices.
Soybeans exhibit both
(c) Contango and backwardation
With corn at 1.80 she makes: (0.15)(10000) - (1200)e^(0.04 0.5) = 275.7584
With corn at 1.75 she makes: (0.10)(10000) + (0.05)(10000) - (1200)e^(0.04 0.5) = 275.7584
So her marginal change in PnL due to the drop is:
(b) $0
(950.46)e^(-0.014 0.5)
(a) $943.83
930-920
(c) $10 gain