General Mills paid a premium of $0.10 per bushel to buy September call options for wheat with an exercise price of $6.80. If the price of wheat at the expiration is $6.90, what is the net cost of one bushel of wheat for General Mills?
A) $6.70
B) $6.80
C) $6.90
D) $7.00
Correct Answer:
Verified
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