Problem 23-03 Futures Options Quotes (L04] Suppose you purchase the May 2017 call option on corn futures with a strike price of $3.60. Assume you purchased the option at the last price of the day. Use Table 23.2 a. How much does your option cost per bushel of corn? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) b. What is the total cost of your position? Assume each contract is for 5,000 bushels. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Suppose the price of corn is $3.54 per bushel at expiration of the option contract. What is your net profit or loss from this position? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer as a positive value.) d. What is your net profit or loss if corn futures prices are $3.97 per bushel at expiration? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer as a positive value.) a. per bushel Option cost Total cost b. Chest Underying Future Prior Settie HI/LOW mit Charts volume Updated Lochenende 3314 2 372 man 376 Lomboem a couplets 3760 May 2017 - 122.909 40701 3570 16 38 37 CT 10 Feb 2017 Type: American Options Expiration: May 2017 Strike Range: At The Money Puts HII LOW Limit Prior Prior | Change | sattle LOW Limit Updated High LOW High Volume Updated 163857 16 3802 CT CT 231 276 237 227 40 257 350.0 54 55 5053 LIM 10 Feb 2017 00 10 Feb 2017 16.3837 16 38.54 CT CT NO Limit 00 2 235 235 195 235 385.0 67 73 63 70 Limit 10 Feb 2017 00 10 Feb 2017 16:38:47 NO CT LI 7022051941 156 +51 97 370. 0 55 94 31 97 Limit 10 Feb 2017 16 38.06 10 Feb 2017 00 16:38:40 16:38:06 357 171 163 141 -50171 375.0 103 * 7 103 107 Limit CT 10 Feb 2017 DO 00 10 Feb 2017 16:38:37 CT 10 Feb 2017 LR 924 150 123 117 -51 150 380.0 127 -15 145 Limit 00 16,3824 CT 10 Feb 2017 00 15:39:07 16 3809 NO CT Lim 00 44 125 120 97 -26 125 395.0 - 175 10 Feb 2017 10 Feb 2017 15:38:47 CT 10 Feb 2017 196 110 34 51 - 105 390.0 1911 -18 207 186 200 16:38:47 CT 10 Feb 2017 00 16 3828 NO 16.38.25 10 Feb 2017 10 Feb 2017 15:38:48 NO 16,38:41 CT 10 Feb 2017 10 Feb 2017 00 00 16 39.00 NO 16:38:47 10 Feb 2017 185 57 55 14 -13 57 4 05.0 Limit 00 LIMI 00 10 Feb 2017 About This Report Source: CME Group (www.cmegroup.com), February 10, 2017. Problem 23-03 Futures Options Quotes (L04] Suppose you purchase the May 2017 call option on corn futures with a strike price of $3.60. Assume you purchased the option at the last price of the day. Use Table 23.2 a. How much does your option cost per bushel of corn? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) b. What is the total cost of your position? Assume each contract is for 5,000 bushels. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Suppose the price of corn is $3.54 per bushel at expiration of the option contract. What is your net profit or loss from this position? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer as a positive value.) d. What is your net profit or loss if corn futures prices are $3.97 per bushel at expiration? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer as a positive value.) a. per bushel Option cost Total cost b. Chest Underying Future Prior Settie HI/LOW mit Charts volume Updated Lochenende 3314 2 372 man 376 Lomboem a couplets 3760 May 2017 - 122.909 40701 3570 16 38 37 CT 10 Feb 2017 Type: American Options Expiration: May 2017 Strike Range: At The Money Puts HII LOW Limit Prior Prior | Change | sattle LOW Limit Updated High LOW High Volume Updated 163857 16 3802 CT CT 231 276 237 227 40 257 350.0 54 55 5053 LIM 10 Feb 2017 00 10 Feb 2017 16.3837 16 38.54 CT CT NO Limit 00 2 235 235 195 235 385.0 67 73 63 70 Limit 10 Feb 2017 00 10 Feb 2017 16:38:47 NO CT LI 7022051941 156 +51 97 370. 0 55 94 31 97 Limit 10 Feb 2017 16 38.06 10 Feb 2017 00 16:38:40 16:38:06 357 171 163 141 -50171 375.0 103 * 7 103 107 Limit CT 10 Feb 2017 DO 00 10 Feb 2017 16:38:37 CT 10 Feb 2017 LR 924 150 123 117 -51 150 380.0 127 -15 145 Limit 00 16,3824 CT 10 Feb 2017 00 15:39:07 16 3809 NO CT Lim 00 44 125 120 97 -26 125 395.0 - 175 10 Feb 2017 10 Feb 2017 15:38:47 CT 10 Feb 2017 196 110 34 51 - 105 390.0 1911 -18 207 186 200 16:38:47 CT 10 Feb 2017 00 16 3828 NO 16.38.25 10 Feb 2017 10 Feb 2017 15:38:48 NO 16,38:41 CT 10 Feb 2017 10 Feb 2017 00 00 16 39.00 NO 16:38:47 10 Feb 2017 185 57 55 14 -13 57 4 05.0 Limit 00 LIMI 00 10 Feb 2017 About This Report Source: CME Group (www.cmegroup.com), February 10, 2017
