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 $3.43 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 $3.79 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 C. Profit d. Loss TABLE 23.2 Sample CME Group Futures Options Price Quotations Underlying Future Charts Last Change Prior Settie High LOW HI/LOW Limit volume Updated May 2017 3814 -2 3772 3826 3760 122.909 40701 3570 16 38 37 CT 10 Feb 2017 Type: American Options Expiration: May 2017 > Strike Range: At The Money Calis Puts HI LOW Limit Updated Prior Settle Change Last HII LOW Limit Volume High Stre Price Low Last Prior Sattle Change LON High Volume Updated 163857 CT 10 Feb 2017 No Lim 00 231 274 237 257 3600 51 55 50 53 No 591 Lt 00 163802 CT 10 Feb 2017 16.38.37 CT 10 Feb 2017 21: Limit 2235 235 195 235 3650 67 70 No 676 Limit 00 163854 CT 10 Feb 2017 163847 10 Feb 2017 No Limt 00 702 205 191 165 197 3700 85 o's 94 81 97 No 917 Limit 00 1638 08 10 Feb 2017 16.38.40 CT 10 Feb 2017 NO Limit 00 357 171 163 375.0 103 117 103 107 NO 3.949 Lim 00 16,3806 10 Feb 2017 16.38.37 CT 10 Feb 2017 NO Lim 00 924 150 123 117 150 3000 127 -18 145 126 161 NO 1095 Limit 00 16.38.24 CT 10 FD 2017 16:39:07 CT 10 FD 2017 NO Lim 00 44 125 120 97 125 3850 175 . NO 0 Limit 00 16 3809 CT 10 Feb 2017 15.38.47 CT 10 Feb 2017 No Lim 00 196 110 84 81 105 390.0 1914 -18 207 186 200 No 183 Limit 00 16 38 47 CT 10 Feb 2017 163825 CT 10 Feb 2017 NO Limt 00 53 33 77 65 -15 83 3950 243 - NO o Limit 00 1638 28 CT 10 Feb 2017 16.38.48 10 Feb 2017 NO Limt 230 75 56 54 75 400.0 282 NO 11 Limit 00 1638.41 CT 10 Feb 2017 15.38.47 10 Feb 2017 NO LIME 00 185 57 55 44 57 4050 322 NO 0 Lim 00 16 39.00 CT 10 Fe 2017 ? About This Report
