Suppose you purchase the May 2017 put option on corn futures with a strike price of $3.75. 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 $3.61 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 $3.93 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.)

Table 23.2:

a. Option cost b. Total cost c. Profit d. Loss per bushel Sample CME Group Futures Options Price Quotations TABLE 23.2 HI Low Undenying Future 4072/ 3570 3837 CT 10 Feo 2017 May 2017 * 772 3828 22 909 Type: American Options ExpirationMay 2017 Strike Range At The Money Updated Limit olume High Lo Settls Change Last Price Last Change Settle Low High Volume Limit Updsted 1838 57 6 38 02 231 27237 227 267 53 360 0 g 2017 6 38 37 6 3854 368 0 16 3847 17CT 02 205 91 161 197 3700 9'4 81 97 2017 16 38.40 No 6380 357 171 193 14 |+7 |171 103 117 103 1197 2017 150 127- 126 14.1 095 Limit 16 3809 16 39 07 75 125 120 97 212 10 Peo 2017 83 LE 10Fe 486 110 4 -74 105 191 207 100200 2017 16 3825 16 3828 77 66 83 3960 53 83 16384 No No 8 3841 11 Limt 230 75 75 2017 16 39 00 322 157 Limit 10 Feo DOUR THIS Repo Source: CME Group (www.cmegroup.com). February 10. 2017 a. Option cost b. Total cost c. Profit d. Loss per bushel Sample CME Group Futures Options Price Quotations TABLE 23.2 HI Low Undenying Future 4072/ 3570 3837 CT 10 Feo 2017 May 2017 * 772 3828 22 909 Type: American Options ExpirationMay 2017 Strike Range At The Money Updated Limit olume High Lo Settls Change Last Price Last Change Settle Low High Volume Limit Updsted 1838 57 6 38 02 231 27237 227 267 53 360 0 g 2017 6 38 37 6 3854 368 0 16 3847 17CT 02 205 91 161 197 3700 9'4 81 97 2017 16 38.40 No 6380 357 171 193 14 |+7 |171 103 117 103 1197 2017 150 127- 126 14.1 095 Limit 16 3809 16 39 07 75 125 120 97 212 10 Peo 2017 83 LE 10Fe 486 110 4 -74 105 191 207 100200 2017 16 3825 16 3828 77 66 83 3960 53 83 16384 No No 8 3841 11 Limt 230 75 75 2017 16 39 00 322 157 Limit 10 Feo DOUR THIS Repo Source: CME Group (www.cmegroup.com). February 10. 2017