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The settle or closing price for the November 2021 Feeder Cattle futures contract on 9/10 was: 159.125 dollars per hundredweight ($159.125/cwt) a) Fill out the
The settle or closing price for the November 2021 Feeder Cattle futures contract on 9/10 was: 159.125 dollars per hundredweight ($159.125/cwt) a) Fill out the following table for a Feeder Cattle Put using the information provided for the November 2021 Feeder Cattle Put. Strike prices and premiums are reported in dollars per hundredweight. Intrinsic Value Time Value In, At, or Out Strike Price 156.00 158.00 160.00 164.00 Premium 3.400 4.000 5.200 7.000 b) How many options contracts would you need to purchase to appropriately cover 200 head of feeder steers with an expected sale weight of 80016 per head? c) Pick the strike price in the 3rd row of the table. If you purchased Feeder Cattle puts to appropriately cover 200 head with an expected sale weight of 800lb per head (as determined in part b), what would the total premium cost be? (show the work for your calculation) The settle or closing price for the November 2021 Feeder Cattle futures contract on 9/10 was: 159.125 dollars per hundredweight ($159.125/cwt) a) Fill out the following table for a Feeder Cattle Put using the information provided for the November 2021 Feeder Cattle Put. Strike prices and premiums are reported in dollars per hundredweight. Intrinsic Value Time Value In, At, or Out Strike Price 156.00 158.00 160.00 164.00 Premium 3.400 4.000 5.200 7.000 b) How many options contracts would you need to purchase to appropriately cover 200 head of feeder steers with an expected sale weight of 80016 per head? c) Pick the strike price in the 3rd row of the table. If you purchased Feeder Cattle puts to appropriately cover 200 head with an expected sale weight of 800lb per head (as determined in part b), what would the total premium cost be? (show the work for your calculation)
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