Each of the positions you take must be closed out by February 16, but you may wish to close them out sooner. You are responsible for watching for and accounting for the effects of dividend payments while the positions is open. You can obtain information about dividend declarations from the Dividend News section of the Wall Street Journal or from Yahoo Finance. When you close a position, record the amount of your profit or loss. Assume that all of the reported closing prices are correct and are available contemporaneously.
Investors are risk neutral.
The 1-year interest rate is 6 percent. Find the price of the call in question 2 now. Find the price of the call in question 2 now. Do NOT use the software to do question 1 to verify that you understand how to do Black Scholes with a calculator. You wish to take a long position in one wheat forward contract.