Given Information:

- Suppose you had purchased one September 2015 call option contract on crude oil futures with a strike price of 5,050 cents per barrel.

a) How much would your option have cost per barrel of oil?

b) What would have been the total cost of the one call option contract?

c) Suppose the price of oil futures was 5,400 cents per barrel at expiration of the options contract. What would have been your net profit or loss from this position (including the cost of the contract)?

d) Suppose the price of oil futures was 4,900 cents per barrel at expiration of the options contract. What would have been your net profit or loss from this position (including the cost of the contract)?

*Please show your work as best as possible including formulas used, Thank you*

FIGURE 24.11 Future options prices: Wednesday, July 22, 2015 0at options (Expiring July 2015): Hi/Lo updated Limit Volume High Low Settle change Strike Hi/ Lo 1627:41 CT No Limit 0 Last Price Last Change Settle Low High volume Limit 11 0 -10 100 a 250 0 1 -01 02 0 1 0 1 5 No Limit 16:27:42 CT 2015-06-26 16:27:41 CT No Limit 2 67 6'7 64 +0 3 67 255 06 0 No Limit 16:27:42 CT 2015-06-26 16:27:41 CT No Limit 6 1'0 10 3'0 20 1'0 260 1'3 a 22 1'3 a 0 No Limit 16:27:42 CT 2015-06-26 2015-06-26 16:27:41 CT No Limit 10 1'4 b 10 a 1'3 0'3 1'0 a 265 3'5 a 2'0 55 3'5 a 2015-06-26 o No Limit 16:27:42 CT 2015-06-26 16:27:41 CT No Limit 1 04, 01 a 05 0'4 0'1 a 270 q'7 0 No Limit 16:27:42 CT 2015-06-26 2015-06-26 Silver Options (Expiring September 2015): CALLS PUTS Hi/Lo Prior Strike Prior Hi/Lo Updated Limit Volume High Low Settle Change Last Price Last Change Settle Low High Volume Limit Updated 0.001 0 02:26 CT No Limit 2850 13,715 0 No Limit 18:01:25 CT 2015-07-22 0,001 0.001 2015-07-21 2875 13.965. 0.001 18:01 02 CT No Limit 0 No Limit 18:02:00 CT 2015-07-21 0.001 0.001 2015-07-21 0 15:02 CT No Limit 30 0.001 0.001 001 0 0.001 2400 14.215 0 No Limit 18:00:49 CT 0.001 2015-07-21 2015-07-22 0,001 14.465 2925 No Limit 18:01:14 CT 0.001 1800.50 CT No Limit 0.001 2015-07-21 2015-07-21 0.001 2950 14,715 0 No Limit 18:01:23 CT 0.001 1802.02 CT No Limit 0,001 2015-07-21 2015-07-21 0.001 FIGURE 24.11 Future options prices: Wednesday, July 22, 2015 0at options (Expiring July 2015): Hi/Lo updated Limit Volume High Low Settle change Strike Hi/ Lo 1627:41 CT No Limit 0 Last Price Last Change Settle Low High volume Limit 11 0 -10 100 a 250 0 1 -01 02 0 1 0 1 5 No Limit 16:27:42 CT 2015-06-26 16:27:41 CT No Limit 2 67 6'7 64 +0 3 67 255 06 0 No Limit 16:27:42 CT 2015-06-26 16:27:41 CT No Limit 6 1'0 10 3'0 20 1'0 260 1'3 a 22 1'3 a 0 No Limit 16:27:42 CT 2015-06-26 2015-06-26 16:27:41 CT No Limit 10 1'4 b 10 a 1'3 0'3 1'0 a 265 3'5 a 2'0 55 3'5 a 2015-06-26 o No Limit 16:27:42 CT 2015-06-26 16:27:41 CT No Limit 1 04, 01 a 05 0'4 0'1 a 270 q'7 0 No Limit 16:27:42 CT 2015-06-26 2015-06-26 Silver Options (Expiring September 2015): CALLS PUTS Hi/Lo Prior Strike Prior Hi/Lo Updated Limit Volume High Low Settle Change Last Price Last Change Settle Low High Volume Limit Updated 0.001 0 02:26 CT No Limit 2850 13,715 0 No Limit 18:01:25 CT 2015-07-22 0,001 0.001 2015-07-21 2875 13.965. 0.001 18:01 02 CT No Limit 0 No Limit 18:02:00 CT 2015-07-21 0.001 0.001 2015-07-21 0 15:02 CT No Limit 30 0.001 0.001 001 0 0.001 2400 14.215 0 No Limit 18:00:49 CT 0.001 2015-07-21 2015-07-22 0,001 14.465 2925 No Limit 18:01:14 CT 0.001 1800.50 CT No Limit 0.001 2015-07-21 2015-07-21 0.001 2950 14,715 0 No Limit 18:01:23 CT 0.001 1802.02 CT No Limit 0,001 2015-07-21 2015-07-21 0.001