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Six months from now, Farmer Mike will harvest 25,000 bushels of com. In doing so, he...

Six months from now, Farmer Mike will harvest 25,000 bushels of com. In doing so, he incurs costs of $136,000. The current spot price of com is $5.90 per bushel, and the effective six-month interest rate is 6 percent. Mike has decided to hedge with a collar by purchasing $5.70-strike puts and selling $6.10-strike calls on 25,000 bushels of com. The puts have a premium of $0.47 per bushel, while the calls have a premium of $0.8 per bushel. What total profit would Mike earn if the market price of com at harvest time is $5.30, $5.70, $6.10, and $6.50, respectively?

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