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Problem 23-05 Futures Options Quotes (L04] 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.) per bushel a. Option cost b. Total cost TABLE 23.2 Sample CME Group Futures Options Price Quotations Underiying Future Underying Future Charts Charts Lost Last Change Change et Prior Settie High High LOW Low Volume volume HI/LOW Limit are Updated updates May 2017 - 2 3814 37723826 3760 122.909 4070) 3570 1638.37 CT 10 Feb 2017 Type: American Options Expiration: May 2017 Strike Range: At The Money Puts Prior LOW Limit Updated High Low Settle Change strike Price Last Last Change Prior Settie Low High volume Limit Updated NO Limit 231 274 237 227 -40257 380.0 54 55 5053 16:38:02 CT 10 Feb 2017 10 Feb 2017 00 15:38:37 CT 10 Feb 2017 2 235 23' 5 195 - 235 385.0 674 736370 16.38.54 10 Feb 2017 0 16.38:47 16:38:06 NO Limit TOP 205 1911 166 -31197 3700 85 94 51 97 10 Feb 2017 10 Feb 2017 16:38:40 16:38:06 357 171 Limit 163 141 -30 174 375.0 103 -14 117 103 CT 107 10 Feb 2017 10 Feb 2017 218 218 218 218 16:38:24 16:38:37 10 Feb 2017 Limit 924 150 123 7 31 150 380.0 127 -18 145 126 124 10 Feb 2017 16:39 07 16 3809 NO CT 3850 - 175 10 FD 2017 10 Feb 2017 16:38:47 CT NO LIME 00 196 110 84 84 -74 105 390.0 191 -18 207 136 200 183 LIE 16:38:47 CT 10 Feb 2017 10 Feb 2017 16:38:28 15,38 25 CT 10 Feb 2017 3950 - 243 10 Feb 2017 15:38:48 CT 10 Feb 2017 Limit 230 75 56 54 -2175 400.0 - 252 - 11 Limit 16:38:41 CT 10 Feb 2017 15:3847 16:39:00 CT NO Lim 00 ! CT 185 57 55 44 13 4050 57 - - 0 10 Feb 2017 Limit 00 10 Feb 2017 ? About This Report Source: CME Group (www.cmegroup.com), February 10, 2017. Problem 23-05 Futures Options Quotes (L04] 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.) per bushel a. Option cost b. Total cost TABLE 23.2 Sample CME Group Futures Options Price Quotations Underiying Future Underying Future Charts Charts Lost Last Change Change et Prior Settie High High LOW Low Volume volume HI/LOW Limit are Updated updates May 2017 - 2 3814 37723826 3760 122.909 4070) 3570 1638.37 CT 10 Feb 2017 Type: American Options Expiration: May 2017 Strike Range: At The Money Puts Prior LOW Limit Updated High Low Settle Change strike Price Last Last Change Prior Settie Low High volume Limit Updated NO Limit 231 274 237 227 -40257 380.0 54 55 5053 16:38:02 CT 10 Feb 2017 10 Feb 2017 00 15:38:37 CT 10 Feb 2017 2 235 23' 5 195 - 235 385.0 674 736370 16.38.54 10 Feb 2017 0 16.38:47 16:38:06 NO Limit TOP 205 1911 166 -31197 3700 85 94 51 97 10 Feb 2017 10 Feb 2017 16:38:40 16:38:06 357 171 Limit 163 141 -30 174 375.0 103 -14 117 103 CT 107 10 Feb 2017 10 Feb 2017 218 218 218 218 16:38:24 16:38:37 10 Feb 2017 Limit 924 150 123 7 31 150 380.0 127 -18 145 126 124 10 Feb 2017 16:39 07 16 3809 NO CT 3850 - 175 10 FD 2017 10 Feb 2017 16:38:47 CT NO LIME 00 196 110 84 84 -74 105 390.0 191 -18 207 136 200 183 LIE 16:38:47 CT 10 Feb 2017 10 Feb 2017 16:38:28 15,38 25 CT 10 Feb 2017 3950 - 243 10 Feb 2017 15:38:48 CT 10 Feb 2017 Limit 230 75 56 54 -2175 400.0 - 252 - 11 Limit 16:38:41 CT 10 Feb 2017 15:3847 16:39:00 CT NO Lim 00 ! CT 185 57 55 44 13 4050 57 - - 0 10 Feb 2017 Limit 00 10 Feb 2017 ? About This Report Source: CME Group (www.cmegroup.com), February 10, 2017