Answered step by step
Verified Expert Solution
Question
1 Approved Answer
TABLE 23.2 es options PT Sample ME Group Quotations Charts Last Change Prior Sattie High LOW HI/LOW Limit volume Underlying Future May 2017 Updated 16.3837
TABLE 23.2 es options PT Sample ME Group Quotations Charts Last Change Prior Sattie High LOW HI/LOW Limit volume Underlying Future May 2017 Updated 16.3837 CT 10 Feb 2017 3814 3772 3780 40701 3570 122.909 1 Type: American Options Expiration May 2017 Strike Range: At The Money Calls Puts LOW Limit Volume Prior Settle Change Last Strike Price LOW HII LOW Volume Limit High Prior Sattle Last Change LON High Updated Updated 15:38:57 CT 10 Feb 2017 No Lim 231 274 237 257 360.0 51 55 50 53 No 591 Limit 00 16 3802 10 Feb 2017 00 16.38.37 CT 10 Feb 2017 No Limit 2 235 235 195 235 3650 73 70 No 676 Limit 00 16 38.54 CT 10 Feb 2017 16:38:47 CT 10 Feb 2017 NO Limit 702 205 191 155 197 370.0 85 - 94 81 97 No 917 Limit 00 16.38.06 10 Feb 2017 16:38:40 CT 10 Feb 2017 NO Limit 00 357 171 163 171 375.0 103 117 103 107 No 3.949 Limit: 00 16 38.06 CT 10 Feb 2017 16:38:37 CT 10 Feb 2017 NO Limit 00 924 150 123 117 150 3800 127 -18 145 126 NO 1.095 Limit 00 16:38:24 CT 10 Feb 2017 15:39:07 CT 10 Feb 2017 NO Limit 00 44 125 120 97 125 395.0 - 175 - NO 0 Lim 00 16:38:09 CT 10 FD 2017 16:38:47 CT 10 Feb 2017 NO Limit 00 496 110 84 81 105 390.0 191 207 186 200 NO 183 Limit 00 16:38:47 CT 10 Feb 2017 16,38 25 CT 10 Feb 2017 NO Limit 010 77 66 -15 83 395.0 243 No 0 Limit 00 16:38:28 CT 10 Feb 2017 16,38:48 CT NO NO 16:38:41 CT Suppose you purchase the May 2017 call option on corn futures with a strike price of $3.85. Assume you purchased the option at the last price if the day. Use Table 23.2 a. How much does your option cost per bushel of corn? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) b. What is the total cost? (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 $3.74 per bushel at expiration of the option contract. Each contract is for 5,000 bushels. What is your net profit or loss from this position? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer as a positive value.) d. What is your net profit or loss if corn futures prices are $4.13 per bushel at expiration? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer as a positive value.) per bushel a. Option cost b. Total cost c. Loss d. Profit TABLE 23.2 es options PT Sample ME Group Quotations Charts Last Change Prior Sattie High LOW HI/LOW Limit volume Underlying Future May 2017 Updated 16.3837 CT 10 Feb 2017 3814 3772 3780 40701 3570 122.909 1 Type: American Options Expiration May 2017 Strike Range: At The Money Calls Puts LOW Limit Volume Prior Settle Change Last Strike Price LOW HII LOW Volume Limit High Prior Sattle Last Change LON High Updated Updated 15:38:57 CT 10 Feb 2017 No Lim 231 274 237 257 360.0 51 55 50 53 No 591 Limit 00 16 3802 10 Feb 2017 00 16.38.37 CT 10 Feb 2017 No Limit 2 235 235 195 235 3650 73 70 No 676 Limit 00 16 38.54 CT 10 Feb 2017 16:38:47 CT 10 Feb 2017 NO Limit 702 205 191 155 197 370.0 85 - 94 81 97 No 917 Limit 00 16.38.06 10 Feb 2017 16:38:40 CT 10 Feb 2017 NO Limit 00 357 171 163 171 375.0 103 117 103 107 No 3.949 Limit: 00 16 38.06 CT 10 Feb 2017 16:38:37 CT 10 Feb 2017 NO Limit 00 924 150 123 117 150 3800 127 -18 145 126 NO 1.095 Limit 00 16:38:24 CT 10 Feb 2017 15:39:07 CT 10 Feb 2017 NO Limit 00 44 125 120 97 125 395.0 - 175 - NO 0 Lim 00 16:38:09 CT 10 FD 2017 16:38:47 CT 10 Feb 2017 NO Limit 00 496 110 84 81 105 390.0 191 207 186 200 NO 183 Limit 00 16:38:47 CT 10 Feb 2017 16,38 25 CT 10 Feb 2017 NO Limit 010 77 66 -15 83 395.0 243 No 0 Limit 00 16:38:28 CT 10 Feb 2017 16,38:48 CT NO NO 16:38:41 CT Suppose you purchase the May 2017 call option on corn futures with a strike price of $3.85. Assume you purchased the option at the last price if the day. Use Table 23.2 a. How much does your option cost per bushel of corn? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) b. What is the total cost? (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 $3.74 per bushel at expiration of the option contract. Each contract is for 5,000 bushels. What is your net profit or loss from this position? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer as a positive value.) d. What is your net profit or loss if corn futures prices are $4.13 per bushel at expiration? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer as a positive value.) per bushel a. Option cost b. Total cost c. Loss d. Profit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started