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 $3.55 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 $3.91 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.) per bushel a. Option cost b. Total cost c. d. TABLE 23.2 Sample CME Group Futures Options Price Quotations Prior Settie HI/LOW Charts Last Chango High LOW Volume Limit Underlying Future May 2017 Updated 16:38:37 CT 10 Feb 2017 3814 2 3772 3760 40701 3570 122 909 Type: American Options Expiration : May 2017 Strike Range: At The Money Calls Puts HI LOW Limit Volume Prior Strike Price HI LOW Volume Limit Prior Sattle Updated High Settle Change Last Low Last Change LOW High Updated 15:38:57 CT 10 Feb 2017 No Limt 00 231 274 237 227 so 257 360.0 51 44 55 50 53 No 591 Limit 00 16 38.02 CT 10 FD 2017 16.38.37 CT 10 Feb 2017 No Limit 00 2 235 235 195 235 3650 67 73 63 70 No 676 Limit 00 16.38.54 CT 10 Feb 2017 16:38:47 CT 10 Feb 2017 No Lim 00 702 205 191 165 +51 197 370.0 18 -06 94 81 97 No 917 Limit 00 16.38.08 10 Feb 2017 16:38:40 CT 10 Feb 2017 NO Limit 00 357 171 163 -10 171 375.0 103 -14 117 103 107 NO 3.949 Limit 00 16:38:06 CT 10 Feb 2017 16:38:37 CT 10 Feb 2017 NO Limit 00 924 150 123 117 150 300.0 127 -16 145 126 141 NO 1.095 Limit 00 16:38:24 CT 10 Feb 2017 16.39.07 CT 10 Feb 2017 NO Limit 00 NO 0 Limit 44 125 120 97 125 395.0 17'5 16:38:09 CT 10 Feb 2017 16:38:47 CT 10 Feb 2017 NO Limit 00 496 110 84 81 105 390.0 191 -18 207 186 200 NO 183 LIM 00 16:38:47 CT 10 Feb 2017 15.38.25 CT 10 Feb 2017 No Limit 00 53 83 77 65 -15 83 395.0 - - - No 0 Limit 00 16.38.28 CT 10 Feb 2017 16:38:48 CT 10 Feb 2017 NO Limit 00 230 75 56 54 21 75 400.0 282 - NO 11 Limit 00 16:38:41 CT 10 Feb 2017 ! 16:38:47 10 Feb 2017 NO Limit 00 185 57 55 14 57 405.0 322 NO 0 Limit 00 - 16:39.00 10 Feb 2017
