Suppose you purchase the May 2017 call option on corn futures with a strike price of $3.70. 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 $3.61 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 TABLE 23.2 Sample CME Group Futures Options Price Quotations Prior HI/LOW Undening Future Charts Last Change Hon volume Updated Last 34 change 2 Pro Hon 37723826 Low 3760 | volumo | HLN 122.000 48 70 May 2017 4070/ 3570 1638.37 CT 10 Feb 2017 Type: American Options Expiration: May 2017 Strike Range: At The Money Updated on Low Prior Sottie settle Low High Ils Updated 15335 1638.02 231 276 237 227 0 257 3600 54 55 50 10 Feb 10 Feb 2017 2017 16 38 54 16.3837 CT 10 Feb 2017 1 10 Feb 2017 1638.06 16 38 47 CT 10 Feb 2017 TO2205191 166 -51 197 917 Limit 10 Feb 2017 16:38:06 16 38 40 10 Fe 2017 357 171 163 149 -50174 375.0 103 -14 12 103 107 3.949 LIME 10 Feb 2017 16.38.37 CT 10 Feb 2017 NO Limit 00 16.38.24 10 Feb 2017 15 3907 16 3809 CT CT 10 Feb 2017 10 FD 2017 16:38:47 1638:47 1105451 -24 10 1914 -18 207 986 200 10 Feb 10 Feb 2017 2017 163825 NO 163825 0 Limit 00 10 Feb 2017 10 Feb 2017 16,3841 15.38.48 CT 10 Fe 2017 4000 - 252 10 FD 2017 16:38:47 1639:00 CT 10 Feb 2017 10 Feb 2017 About This Report Source: CME Group (www.cmegroup.com), February 10, 2017