Suppose you purchase the May 2017 put option on corn futures with a strike price of $3.60. Assume your purchase was at the last price. Use Table 23.2 a. How much does your option cost per bushel of corn? (Round your answer to 5 decimal places, e.g., 32.16161.) b. What is the total cost for one contract? 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 futures is $3.41 per bushel at expiration of the option contract. What is your net profit or loss from this position? (Enter your answer as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is your net profit or loss if corn futures prices are $3.81 per bushel at expiration? (Enter your answer as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) per bushel a. Option cost b. Total cost c. Profit d. Loss TABLE 23.2 Sample CME Group Futures Options Price Quotations Charts Prior Settie Chang Last HI/LOW Limit High LOW volume Underlying Future May 2017 Updated 16 38 37 CT 10 Feb 2017 3814 9 3772 40701 3570 3760 122009 Type: American Options Expiration: May 2017 Strike Range: At The Money Calls Puts LOW Limit Volume Updated Strike Price LOW Volume Limit Prior Sattle Change Last High LOW Prior Last Change sottie LOW High Updated 15 38 57 CT 10 Feb 2017 No Lim 00 231 274 237 257 360.0 51 -404 55 50 53 No 591 Limit 00 16 3802 CT 10 Feb 2017 16.38.37 CT 10 Feb 2017 NO Limit 00 2 235 235 195 235 365.0 67 -04 73 63 70 No 676 Limit 00 16:38:54 CT 10 Feb 2017 16:38:47 10 Feb 2017 NO Limit 00 702 205 191 165 31 197 370.0 86 -06 94 81 97 No 917 Limit 00 16.38.06 CT 10 Feb 2017 16.38.40 CT 10 Feb 2017 NO Limit 00 357 171 163 171 375.0 103 -14 117 103 107 No 3.949 Limit 00 16:38 06 10 Feb 2017 16:38:37 CT 10 Feb NO Limit 16:38:24 CT 10 Feb 924 150 NO 1,095 Limit 123 117 150 3800 145 126 231 274 237 51 Limit 00 55 50 53 10 Feb 2017 591 Limit 00 10 Feb 2017 16:38:37 CT 10 Feb No Limit 00 2 235 235 195 235 3650 67 -04 73 53 70 No 675 Limit: 00 16.38.54 CT 10 Feb 2017 2017 16,38:47 CT 10 Feb 2017 No Limit 00 702 2015 191 168 197 370.0 85 -- 94 81 97 No 917 Limit 00 16:38:06 CT 10 Feb 2017 16,38:40 10 Feb 2017 NO Limit 00 357 171 163 141 171 375.0 103 117 103 107 NO 3.949 Limit 00 16.38.06 10 Feb 2017 16:38:37 CT 10 Feb 2017 NO Limit 00 924 150 123 117 150 127 145 126 141 No 1.095 Limit 00 16:38:24 CT 10 Feb 2017 15:39:07 CT 10 Feb 2017 NO Limit 00 44 125 97 125 395.0 17'5 - NO 0 Limit 00 16 3809 CT 10 FD 2017 15.38.47 CT 10 Feb 2017 NO LIM 00 496 110 84 81 10'5 390.0 191 207 186 200 NO 183 Limit 00 16 38:47 CT 10 Feb 2017 16,38 25 CT 10 Feb 2017 No Limit 00 53 83 66 83 3950 No 0 Limit: 00 16:38:28 CT 10 Feb 2017 16:38:41 16:38:48 CT 10 Feb CT NO Limit 00 230 75 56 54 -21 75 400.0 . - NO 11 Limit 00 10 Feb 2017 2017 16:38:47 10 Feb 2017 NO Limit 00 185 57 55 44 57 405.0 NO 0 Limit 00 16 39.00 10 Feb 2017 ? About This Report
