Suppose you purchase the May 2017 put option on corn futures with a strike price of $3.90. 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 $3.59 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 $4.13 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.) a. Option cost per bushel b. Total cost o o TABLE 23.2 Sample CME Group Futures Options Price Quotations HI/LOW Charts Prior Settie change Volume Updated Underying Future May 2017 - Charts J Last 3314 change 42 betro 3772 High 3826 Low 3760 volume 122.909 3870 10 Fes 2017 Type: American Options Expiration: May 2017 Strike Range: At The Money Puts HI LOW Limit Prior Settle Updated Prior Sattle LOW Limit Volume High LON Change High Updated NO 15 38.57 CT 10 Feb 2017 231 274 237 227 48 257 360.0 54 4 55 5053 Lim 1638 02 CT 10 Feb 2017 16 35 37 1638.54 CT Limt Limit 10 Feb 2017 00 10 Feb 2017 16 3806 NO 16:38:47 10 Feb 2017 Limt 00 702 205 191 3700 55 94 31 97 CT Limit 00 10 Feb 2017 16,38:40 1638:06 LIME 375.0 103 -14 17 103 107 3.949 Limit 10 Feb 00 10 Feb 2017 2017 16 3824 15:38:37 CT 10 Feb LIE 924 15' 0 923117 -51 15'0 380.0 127 -15 145 126 144 CT 1.095 Limit 00 00 10 Feb 2017 2017 16:39:07 10 Feb 2017 LINK IMR 16 3809 CT 10 Feb 2017 15.38.47 16:38:47 CT 496 110 34 LIE 00 51 - 105 390.0 1911 -1 207 186 CT 2010 Limit 10 Feb 2017 10 Feb 2017 163825 395.0 - 243- 16 38 28 CT 10 Feb 2017 10 Feb 2017 16:38:48 CT 16:38:41 CT 10 Feb 2017 10 Feb op 2017 16:39:00 NO CT 16:38:47 CT 10 Feb 2017 Limit 00 18557 55 14 -1 57 405.0 - mit 00 10 Feb 2017 ? About This Report Suppose you purchase the May 2017 put option on corn futures with a strike price of $3.90. 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 $3.59 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 $4.13 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.) a. Option cost per bushel b. Total cost o o TABLE 23.2 Sample CME Group Futures Options Price Quotations HI/LOW Charts Prior Settie change Volume Updated Underying Future May 2017 - Charts J Last 3314 change 42 betro 3772 High 3826 Low 3760 volume 122.909 3870 10 Fes 2017 Type: American Options Expiration: May 2017 Strike Range: At The Money Puts HI LOW Limit Prior Settle Updated Prior Sattle LOW Limit Volume High LON Change High Updated NO 15 38.57 CT 10 Feb 2017 231 274 237 227 48 257 360.0 54 4 55 5053 Lim 1638 02 CT 10 Feb 2017 16 35 37 1638.54 CT Limt Limit 10 Feb 2017 00 10 Feb 2017 16 3806 NO 16:38:47 10 Feb 2017 Limt 00 702 205 191 3700 55 94 31 97 CT Limit 00 10 Feb 2017 16,38:40 1638:06 LIME 375.0 103 -14 17 103 107 3.949 Limit 10 Feb 00 10 Feb 2017 2017 16 3824 15:38:37 CT 10 Feb LIE 924 15' 0 923117 -51 15'0 380.0 127 -15 145 126 144 CT 1.095 Limit 00 00 10 Feb 2017 2017 16:39:07 10 Feb 2017 LINK IMR 16 3809 CT 10 Feb 2017 15.38.47 16:38:47 CT 496 110 34 LIE 00 51 - 105 390.0 1911 -1 207 186 CT 2010 Limit 10 Feb 2017 10 Feb 2017 163825 395.0 - 243- 16 38 28 CT 10 Feb 2017 10 Feb 2017 16:38:48 CT 16:38:41 CT 10 Feb 2017 10 Feb op 2017 16:39:00 NO CT 16:38:47 CT 10 Feb 2017 Limit 00 18557 55 14 -1 57 405.0 - mit 00 10 Feb 2017 ? About This Report
