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 $3.63 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 $4.09 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. d. TABLE 23.2 Sample CME Group Futures Options Price Quotations LOS Ung Future Charts Change bette High May 2017 updated CT 1000 Okt 22308 TO Type: American Options Expiration May 2017 Strike Range: At The Money Pro $ Pro Batte Chang w en ON CT ** - 27 GOK * 35 LES 00 60 2 31 SEE 5 OK 2 73 3 70 CT 10 00 00 100 5 00 . 14 - PITU DE 2017 re - 17 103 *** CT 00 390 2018 3 47 9 10 3000 127 -- CT 2 LICE 00 20 21 23 2000 GT U 2011 IN iti 2 195 S $ 20 BE t 3 LR . : 31: 11:11 CT CT IN 30 00 2011 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 $3.63 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 $4.09 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. d. TABLE 23.2 Sample CME Group Futures Options Price Quotations LOS Ung Future Charts Change bette High May 2017 updated CT 1000 Okt 22308 TO Type: American Options Expiration May 2017 Strike Range: At The Money Pro $ Pro Batte Chang w en ON CT ** - 27 GOK * 35 LES 00 60 2 31 SEE 5 OK 2 73 3 70 CT 10 00 00 100 5 00 . 14 - PITU DE 2017 re - 17 103 *** CT 00 390 2018 3 47 9 10 3000 127 -- CT 2 LICE 00 20 21 23 2000 GT U 2011 IN iti 2 195 S $ 20 BE t 3 LR . : 31: 11:11 CT CT IN 30 00 2011
