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 $3.59 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 $3.95 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.) Answer is complete but not entirely correct. a. Option cost $ b. $ Total cost Profit 0.06875 per bushel 343.75 X 456.25 X 343.75 X c. d. Loss TABLE 23.2 Sample CME Group Futures Options Price Quotations Charts Change Prior Settie High Volume HILOW Limit Underlying Future May 2017 LOW 3780 3814 Updated 163837 CT 10 2017 1772 3228 122.000 OTO: 3670 122 909 Type: American Options Expiration : May 2017 Strike Range: At The Money Puts Strike Prior Updated LOW Limit Volume Prior Settle Change Low High Last Price Last LOW Volume Limit Change LOW High NO 163857 CT 10 Feb 2017 231 274 237 Updated 16380 CT 10 Feb 2017 257 3600 57 4 55 50 No 591 Lt 00 53 00 NO 16.30.37 CT 10 Feb 2235 - 235 3650 No 676 Limit 67 14 73 6370 16.38.54 CT 10 Feb 2017 00 NO 16.387 CT 10 Feb 2017 702 205 191 165 197 370.0 85 es 81 97 917 Lt 00 163806 10 Feb 2017 NO 1638.40 CT 10 Feb 2017 357 171 171 375.0 103 117 103 107 3.949 Lim: 00 16 3806 10 Feb 2017 00 16:38:37 CT 10 2017 NO Liit 924 150 117 150 3800 27 145 126 1.095 Lt 16:38:24 CT 10 2017 NO 15:39:07 CT 100 2017 NO 0 Lt 120 97 125 3850 . 175 . 16 3809 CT 10 F 2017 00 16:38:47 CT 10 FD 2017 No Lim! 00 196 110 81 105 390.0 -18 207 186 200 No 183 Lt 00 16 38 47 CT 10 Feb 2017 NO NO 16.3825 CT 10 FD 2017 53 33 77 65 3950 - . . 16 3828 CT 10 F 2017 16,3843 CT 10 2017 NO ut 230 75 56 54 -21 75 4000 NO 11 Lt . 16 38.41 CT 10 Fe 2017 NO 16:38:47 CT 10 FD 2017 NO 0 LEI 185 57 55 57 4050 - 122 - 16.39.00 CT 10 Feb 2017 00 About The Report Source: CME Group (www.cmegroup.com), February 10, 2017. 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 $3.59 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 $3.95 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.) Answer is complete but not entirely correct. a. Option cost $ b. $ Total cost Profit 0.06875 per bushel 343.75 X 456.25 X 343.75 X c. d. Loss TABLE 23.2 Sample CME Group Futures Options Price Quotations Charts Change Prior Settie High Volume HILOW Limit Underlying Future May 2017 LOW 3780 3814 Updated 163837 CT 10 2017 1772 3228 122.000 OTO: 3670 122 909 Type: American Options Expiration : May 2017 Strike Range: At The Money Puts Strike Prior Updated LOW Limit Volume Prior Settle Change Low High Last Price Last LOW Volume Limit Change LOW High NO 163857 CT 10 Feb 2017 231 274 237 Updated 16380 CT 10 Feb 2017 257 3600 57 4 55 50 No 591 Lt 00 53 00 NO 16.30.37 CT 10 Feb 2235 - 235 3650 No 676 Limit 67 14 73 6370 16.38.54 CT 10 Feb 2017 00 NO 16.387 CT 10 Feb 2017 702 205 191 165 197 370.0 85 es 81 97 917 Lt 00 163806 10 Feb 2017 NO 1638.40 CT 10 Feb 2017 357 171 171 375.0 103 117 103 107 3.949 Lim: 00 16 3806 10 Feb 2017 00 16:38:37 CT 10 2017 NO Liit 924 150 117 150 3800 27 145 126 1.095 Lt 16:38:24 CT 10 2017 NO 15:39:07 CT 100 2017 NO 0 Lt 120 97 125 3850 . 175 . 16 3809 CT 10 F 2017 00 16:38:47 CT 10 FD 2017 No Lim! 00 196 110 81 105 390.0 -18 207 186 200 No 183 Lt 00 16 38 47 CT 10 Feb 2017 NO NO 16.3825 CT 10 FD 2017 53 33 77 65 3950 - . . 16 3828 CT 10 F 2017 16,3843 CT 10 2017 NO ut 230 75 56 54 -21 75 4000 NO 11 Lt . 16 38.41 CT 10 Fe 2017 NO 16:38:47 CT 10 FD 2017 NO 0 LEI 185 57 55 57 4050 - 122 - 16.39.00 CT 10 Feb 2017 00 About The Report Source: CME Group (www.cmegroup.com), February 10, 2017