Chapter 20, Problem 17PS

Summary Introduction

To describe: Program provisions of the agricultural price systems, asset, and the exercise price.

Introduction: There are some program provisions for the benefits of farmers to sell their crops at specific price to the government. Specific price may be more than the market price. An assetis anything of monetary value owned by a person or business. Exercise price (also known as strike price) is the price at which an option holder can call (purchase) or put (sell) the underlying asset.