Suppose you purchase the May 2017 call option on corn futures with a strike price of $370. 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 $3.59 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 $4.03 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. Option cost b. Total cost per bushel c. d. Profit LOSS 1638 37 CT 10 Feb 2017 20 122909 GOTI 35TO 3780 3772 3814 5 May 2017 Type: American Options Expiration: May 2017 Strike Range: At The Money Puts HI LOW LOW Prior Stre Price Prior Sectie Updated High Low Change Last Change LON High Updated CT 10 Fe 21 257 3600 16 3800 10 51 50 NO 501 LM 0 53 00 10 Fe 43 19 09 2011 CT 10 F 16 28.08 3700 4 FED 2011 16.3000 o RI 2017 a 4 1630 CT 10 Pro 2017 917 16380 CT 10 Feb 2017 702 203 197 190 180 00 00 1836.00 CT 10 NO 3.0LM 163 NO Um! 00 -30 - 163806 10 2017 1711 101 117 357 17 193 103 107 00 163839 CT 10 FD 2017 NO 1095 L 204 150 117 . 150 - 105 120 164 163024 CT 10 F 2017 00 NO 16.30 10 Pe 2017 4 125 120 7 -24 175 . . NO 0 Lit oo 16 3800 10 FD 2017 90 NO 26 110 31 -14 10 11 -18 200 No 153 m 00 16.30.47 CT 10 Fe 2017 107 2017 00 1632 77 86 83 3960 CT 10 Fee Chit 00 00 No 250 75 50 10 54 - 15 400.0 232 16.3841 CT 10 Feb 93 11 00 NO 160 - ST 4050 10 Auto Suppose you purchase the May 2017 call option on corn futures with a strike price of $370. 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 $3.59 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 $4.03 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. Option cost b. Total cost per bushel c. d. Profit LOSS 1638 37 CT 10 Feb 2017 20 122909 GOTI 35TO 3780 3772 3814 5 May 2017 Type: American Options Expiration: May 2017 Strike Range: At The Money Puts HI LOW LOW Prior Stre Price Prior Sectie Updated High Low Change Last Change LON High Updated CT 10 Fe 21 257 3600 16 3800 10 51 50 NO 501 LM 0 53 00 10 Fe 43 19 09 2011 CT 10 F 16 28.08 3700 4 FED 2011 16.3000 o RI 2017 a 4 1630 CT 10 Pro 2017 917 16380 CT 10 Feb 2017 702 203 197 190 180 00 00 1836.00 CT 10 NO 3.0LM 163 NO Um! 00 -30 - 163806 10 2017 1711 101 117 357 17 193 103 107 00 163839 CT 10 FD 2017 NO 1095 L 204 150 117 . 150 - 105 120 164 163024 CT 10 F 2017 00 NO 16.30 10 Pe 2017 4 125 120 7 -24 175 . . NO 0 Lit oo 16 3800 10 FD 2017 90 NO 26 110 31 -14 10 11 -18 200 No 153 m 00 16.30.47 CT 10 Fe 2017 107 2017 00 1632 77 86 83 3960 CT 10 Fee Chit 00 00 No 250 75 50 10 54 - 15 400.0 232 16.3841 CT 10 Feb 93 11 00 NO 160 - ST 4050 10 Auto
