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20. value 10.00 points Suppose you purchase the July 2011 put option on orange juice futures with a strike price of $1.75 Use Table 232

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20. value 10.00 points Suppose you purchase the July 2011 put option on orange juice futures with a strike price of $1.75 Use Table 232 How much does your option cost per pound of orange juice? (Round your answer to 4 decimal places. (e.g., 32.1616)) Option cost per pound What is the total cost for one contract? (Round your answer to 2 decimal places. (e.g., 32.16)) Total cost Suppose the price of orange juice futures is $155 per pound at expiration of the option contract What is your net profit or loss from this position? (Input the amount as a positive value. Round your answer to 2 decimal places. (e.g. 32.16)) Profit $ What is your net profit or loss if orange juice futures prices are $1.85 per pound at expiration? (Input the amount as a positive value. Round your answer to 2 decimal places. (e.g. 32.16)) Loss S 15,000 lbs., cents per lb. Puts Jun Jul Sample Wall Street Journal Futures Option Price Quotations SOURCE: Reprinted by permission of The Wall Stre Journal, 2011 Dow Jones & Company, Inc., March 30, 2011 Al Rights Reserved Worldwide Jul 06 05 06 05 05 99.1 94.1 89.1 84.1 79.1 741 68.1 14.1 59,1 54.1 49.1 441 39.1 34.1 May 05 .05 -06 05 06 05 05 05 05 05 05 .05 05 05 06 05 05 1 3 95 25 52 06 05 05 05 06 46.7 05 . Calls Strike Price Mary Jun 60 101.7 65 96.7 70 91.7 75 86.7 80 81.7 B5 76.7 90 71.7 95 68.7 100 61.7 106 58.7 110 51.7 115 120 41.7 125 36.7 31.7 185 26.7 24.15 140 21.7 19.4 146 16.7 14.0 150 11.95 10.9 7.6 7.6 180 4.15 5 165 1.85 3.15 170 66 1.9 2 1.1 180 05 65 185 4 100 25 196 15 200 .05 205 05 210 05 215 .05 220 05 225 230 235 .05 240 245 05 250 05 Open Interest BURUN UILLINGER 130 29.15 24.4 19.B 15.45 11.65 8.5 B 41 2.7 15 4 85 1.85 3.56 5.95 9.06 156 9 175 13.55 18.4 23.4 28.4 334 38.4 43.4 48.4 88888888888888 c88888888 12.8 17 21.55 28.3 31.1 36 41 48 51 56 81 66 71 76 81 88 91 Puts 4 8 1.45 265 45 6.96 10.05 13.65 17.7 22.05 28.7 31,45 36.2 41.06 48 51 56 61 86 71 76 BI 80 91 7,147 53.4 584 534 884 734 784 83.4 88.4 Calls 9,165 TUL UST

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