Refer to Figure 24.11 to answer this question. Suppose you purchase a September 2015 call option on crude oil futures with a strike price of 5,100 cents per barrel. Assume 1,000 barrels per contract. How much does your option cost per barrel of oil? Option cost per barrel $ 0.014 What is the total cost? Total cost 14 Suppose the price of oil future is 5,550 cents per barrel at expiration of the option contract. What is your net profit or loss from this position? Profit 3986.00 What if oil futures prices are 4,750 cents per barrel at expiration? (Input the amount as a positive value.) Loss 14.00 FIGURE 24.11 Future options prices: Wednesday, July 22, 2015 Oat Options (Expiring July 2015): CALLS PUTS Alor High - Low - Settle 110 Change -10 Last 1000 PHC 250 Last 0 1 Change - 01 Settle 02 Low 01 High 01 K/LO Linet No Limit volume 5 0 K/LO Updater Umit 16:27:41 CT No Limit 2015-06-26 16:27:41 CT No Limit 2015-06-26 16:27:41 CT No Limit 2015-06-26 16:27:41 CT NO Lindt 2015-06-26 16:27:41 CT No Limit 2015-06-26 Wolume 0 2 6 10 1 . 130 67 67 10 10 14b 1'09 04010 64 30 13 05 +03 67 -20 10 -03 1'00 -04 019 255 260 265 270 -07 -20 - 06 22 5' 5 97 . 130 3'50 - - - - No Lim# No Limh No Limf No Limt Updated 16:27:42 CT 2015-06-26 16:27:42 CT 2015-06-26 16:27:42 CT 2015-06-26 16:27:42 CT 2015-06-26 16:27:42 CT 2015-06-26 0 0 . Silver Options (Expiring September 2015): CALLS PUTS Polo Rk Last High - Change Low - Settle 0.001 Stike Pc 2850 change - Last - Setle 13.715 Low . High . volume 0 K/LO Updater Umit Wome 040225 CT No Limit 0 2015-07-22 0.001 16:01:02 CT NoLindt 0 2015-07-21 / 0.001 0915:02 CT NoLindt 30 2015-07-22 0.001 18:00:50 CT No Limit 0 2015-07-21 70.001 18:02:02 CT NoLimit 0 2015-07-21 70.001 - 0.001 0.001 - - 0.001 - 0.001 . 0.0010 0.001 - 2875 0.0012900 . - - - 13.465 14.215 14.215 14.465 0 0 - - K/LO n t Updated No Limit 18:01:25 CT 0.001 2015-07-21 No Lim# 18:02:00 CT / 0.001 2015-07-21 No Limit 18:00:49CT / 0.001 2015-07-21 No Limit 1&01:14 CT / 0.001 2015-07-21 No Limt 18:01:23 CT / 0.001 2015-07-21 - - 0 - - 0.0 - - 2950 - .. 14.715 - - 0 Light Sweet Crude Oil Options1,000 U.S. barrels, cents per barrel (Expiring September 2015): CALLS PUTS K/Lo K/LO Updater Umit Yleme High Low Settle change Last Price Last Change Setle Low High Volume Let Updated 0933.20 CT No Limit 934 2.11 1.76 2.28 -0.43 1.85 b 5000 1.57 a 0.45 1.42 1.65 2 1.149 No Limit 0433:20 CT 10.01 2015-07-22 0433:23 CT No Limit 187 1.4 -0.34 16 5050 2124 0.44 1.6 1.86 2.26b_80 2.25 b 80 No Lim 0933.20 CT 2015-07-22 /001 / 0.01 2015-07-22 0933:20 CT No Limit 354 1.51 1.73 -0.38 1.4 5100 2.40 a 0.53 1.87 2.11 2.54b185 MOLINH 0433:20 CT 2015-07-22 / 0.01 10.01 2015-07-22 0932:20 CT No Limit 144 1.25 1.14 1.49 -0.31 1.18b5150 2.70 a 0.57 2.13 25 2.84b 18 No Limit 0933.20 CT 2015-07-22 0.01 70.01 2015-07-22 0933.20 CT No Limit 570 1.1 0.94 1.26 -0.27 1.01 b 5200 3.040 0.62 2.42 2.62 3.18 b 16 No Limit 0433:20 CT 2015-07-22 001 /0.01 2015-07-22 198.29 CT NOLIM 187 1.85 1.54 Volume 0 3 NI/LO Updated mit 0930:15 CT No Limit / 2015-07-22 0.00005 0926:45 CT No Limit / 2015-07-22 0.00005 0907:10 CT No Limit / 2015-07-22 0.00005 09.30:00 CT No Limit / 2015-07-22 0.00005 090247 CT No Limit / 2015-07-22 0.00005 CAD/USD Options (Expiring August 2015): CALLS PUTS HI/LO High Low Sette Change Last Price Last Change Settle LOW High Volume Unit Updated 0.0132 b 0.0090 a 0.0127 -0.0036 0.0091 b 7600 0.0028 0.0013 0.0015 0.002 0.0029 40 No Limit / 0430:15 CT 0.00005 2015-07-22 0.00% b 0.0058 0.009 -0.003 0.0050 7650 0.0049 b 0.002 0.0028 0.0035 0.0048 83 No Limit / 0430:01 CT 0.00005 2015-07-22 0.0063 b 0.0037 a 0.0054 -0.0021 0.0038 b 7700 0.0075 b 0.0028 0.0047 0.0052 0.0076b No Limit / 0431:26 CT 0.00005 2015-07-22 0.0041 b 0.0022 0.0035 -0.0014 0.0022 7750 0.0110 0 0.0036 0.0074 0.0070 a 0.0111 b 0 No Limit / 09.30:12 CT 0.00005 2015-07-22 0.0024 b 0.0012 0.0021 -0.0009 0.00120 7900 0.0147 b 0.0036 0.0109 0.0103 0.0147b 0 No Limit / 0904:39CT Q.CC005 2015-07-22 72 870 45 Source: cm groupem
