Traditional option strategies can be used with futures options. We can write covered calls on futures contracts with futures options. A December futures call has a strike price of $$110$ and a premium of $$1\mathrm{.}24.$ The trader has a long futures position at $$108\mathrm{.}72$ and writes a call at $$110.$ Contracts have a multiplier of $100.$ If the call is exercised, the writer is assigned a short futures position. The closing price on the option is $$114.$ The writer closes out the option position. The net payoff on the option is $($don$\text{'}$t forget the multiplier$)$:

Question $19$ options:

$-$$$524$

$$400$

$-$$$276$

$$276$