Question 1. The May 23 corn futures are trading at 687'4. A 660 May 23 corn call is trading at 591. a. Is the 660 May 23 corn call in or out of the money when the May 23 corn futures are trading at 687'4? (5 points) b. How much is the intrinsic value on the 660 May 23 corn call when the May 23 corn futures are trading at 687'4 (5 points) c. Suppose the price of the May 23 corn futures increases to 700. The premium on the 660 May 23 corn call will change. Will it increase or decrease? Why? (10 points) d. Suppose you offset your long 660 May 23 corn call. When you offset the premium on the 660 May 23 corn call is 711 cents. Calculate the amount of the gain/loss on your call. Indicate whether this amount is a gain or a loss. (5 points)