Suppose you purchase the May 2017 call option on corn futures with a strike price of $3.75. 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 $3.62 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 $4.05 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 Prior Sette HI/LOW Undertying Future Charts High Volume Updated May 2017 34 2 37723426 Jeo 580 122.909 122.909 470 483837 CT 10 Feb 2017 Type: American Options Expiration: May 2017 Strike Range: At The Money LOW Updated Updated 165857 163802 CT CT 360.0 54 44 55 5053 10 Feb 2017 10 Feb 2017 16.38.54 16:38:37 CT 10 Feb 2017 235 235195 CT -4 3650 67 235 73 6370 10 Feb 2017 16 3806 1638.47 CT 10 Feb 2017 702_205191 156 51 3700 86 Limit 00 10 Feb 2017 16.38.40 16 3806 CT CT 357 171 163 141 10 Feb 2017 10 Feb 2017 16:38:24 16:38:37 CT 10 Feb 2017 924 150 123 117 -51 150 3000 127 -1 145 126 181 10 Feb 2017 16 39.07 44 125 120 97 -28125 16 3809 CT 10 FD 2017 10 Fe 2017 1638.47 16:38:47 CT 10 Feb 2017 496 110 34 51 - 105 207 186 10 Feb 2017 16.38 25 163828 CT 53 33 77 65 -1's 10 Feb 2017 10 Feb 2017 16,38:45 16 38 41 CT 230 75 56 54 -21 75 10 Feb 2017 10 Feb 2017 163847 163900 185 57 59 -13 Limit 10 Feb 2017 00 10 Feb 2017 Out This Repon Suppose you purchase the May 2017 call option on corn futures with a strike price of $3.75. 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 $3.62 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 $4.05 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 Prior Sette HI/LOW Undertying Future Charts High Volume Updated May 2017 34 2 37723426 Jeo 580 122.909 122.909 470 483837 CT 10 Feb 2017 Type: American Options Expiration: May 2017 Strike Range: At The Money LOW Updated Updated 165857 163802 CT CT 360.0 54 44 55 5053 10 Feb 2017 10 Feb 2017 16.38.54 16:38:37 CT 10 Feb 2017 235 235195 CT -4 3650 67 235 73 6370 10 Feb 2017 16 3806 1638.47 CT 10 Feb 2017 702_205191 156 51 3700 86 Limit 00 10 Feb 2017 16.38.40 16 3806 CT CT 357 171 163 141 10 Feb 2017 10 Feb 2017 16:38:24 16:38:37 CT 10 Feb 2017 924 150 123 117 -51 150 3000 127 -1 145 126 181 10 Feb 2017 16 39.07 44 125 120 97 -28125 16 3809 CT 10 FD 2017 10 Fe 2017 1638.47 16:38:47 CT 10 Feb 2017 496 110 34 51 - 105 207 186 10 Feb 2017 16.38 25 163828 CT 53 33 77 65 -1's 10 Feb 2017 10 Feb 2017 16,38:45 16 38 41 CT 230 75 56 54 -21 75 10 Feb 2017 10 Feb 2017 163847 163900 185 57 59 -13 Limit 10 Feb 2017 00 10 Feb 2017 Out This Repon