Suppose you purchase the July 2020 put option on corn futures with a strike price of...
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Suppose you purchase the July 2020 put option on corn futures with a strike price of $3.25. 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 $3.12 per bushel at expiration of the option contract. What is your net profit or loss from this position? (Do not round intermediate calculations and enter your answer as a positive value rounded to 2 decimal places, e.g., 32.16.) d. What is your net profit or loss if corn futures prices are $3.27 per bushel at expiration? (Do not round intermediate calculations and enter your answer as a positive value rounded to 2 decimal places, e.g., 32.16.) a. Option cost b. Total cost c. d. American Options Expiration 2020 Strike Range At The Money per bushel 13:21:47 20 35 19 May 20 404 34 27 26 279 Suppose you purchase the July 2020 put option on corn futures with a strike price of $3.25. 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 $3.12 per bushel at expiration of the option contract. What is your net profit or loss from this position? (Do not round intermediate calculations and enter your answer as a positive value rounded to 2 decimal places, e.g., 32.16.) d. What is your net profit or loss if corn futures prices are $3.27 per bushel at expiration? (Do not round intermediate calculations and enter your answer as a positive value rounded to 2 decimal places, e.g., 32.16.) a. Option cost b. Total cost c. d. American Options Expiration 2020 Strike Range At The Money per bushel 13:21:47 20 35 19 May 20 404 34 27 26 279
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