Examine the historical prices of commodity futures and the futures call and futures puts options you selected in Exercise 9.Select a time period that the contracts were active.

a. Use the "Chart" screen (Chart ) to create multigraphs for the futures, call futures, and put futures. On the Chart Menu screen, select the Standard G chart; once you have loaded your securities, go to "Edit" to put your graphs in separate panels.

b. Select a period and calculate the profit or loss from opening and closing a short straddle position at the futures call and put prices at the beginning and ending dates for your selected period.

c. Comment on any follow-up actions you could have taken during the period to change your position to a profitable one if you had a loss or more profitable if you had a profit.

d. Using the annotation bar, apply the "\% Change" tool to calculate the percentage change for your select periods, and then click the "News" icon on the annotation bar to find relevant news events on or preceding the opening date.

Exercise 9.

Select a commodity futures option (e.g., a CBT commodity futures option). Use CTM to identify commodities that have option contracts: Enter CTM; Select commodity futures (e.g., corn) and then select "Yes" on the "Options" tab to see futures with options contracts on them; type EXS to find expirations (e.g., \(\mathrm{C} \mathrm{H7}\) for March 2017 corn); upload futures options. On the selected futures screen, type OSA to bring up the OSA screen, and select "Listed Options" on the contract from the red "Positions" dropdown tab to bring up listed futures options and then select the options to include in your evaluation. Using the Bloomberg OSA screen and "Scenario Chart" evaluate some of the following option strategies that would reflect an expectation of a stable price trend for the selected commodity:

a. Straddle Sale: Short call and put with similar terms.

b. Ratio Call Write: Short in call and long in the futures, with more calls than futures positions.

c. Long Butterfly Spread: Long in call with low X, short in 2 calls with middle \(\mathrm{X}\), and long in call with high \(\mathrm{X}\) (similar position formed with puts).

d. Money Combination Sale: Short call and put with different exercise prices.