Finance Assignment | Professional Writing
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 Option cost Total cost TABLE 23.2 Sample CME Group Futures Options Price Quotations Underlying Future Charts Charts Lost Change Prior Sottie HI/LOW Limit High Unsereying Future May 2017 Volume Updated Change 2 the the HION 372 376 Low 3760 Volume Theo 122.909 TOP 3 10 Type: American Options Expiration: May 2017 Strike Range: At The Money LOW
Prior Prior Settle Updated Limit Change Last Last Change Bottle Low LOW Limit High volume Updated 163857 16:38 02 231 274 237 227 -40 257 360. 051 44 55 5053 10 Feb 10 Feb 2017 2017 16.30.37 16.38.54 385.0 67 73 6370 676 Limit 10 Feb 10 Feb 2017 15 38.7 16.38.06 702 205 191 165 3700 56 95 94 81 917 LIME 10 Feb CT 10 Feb 2017 16. 38-40 16:38:06 CT 357 1711 163 164 -50 1 74 375.0 103 -14 17 103 107 3.949 LIME! 10 Feb 10 Feb 2017 2017 16:38:37 CT 924 150 12317 -31 150 380.0 127 -15 145 126 127 1.095 LIME 16:38:24 ст 10 Feb 10 Feb 2017 2017 16:39:07 16:38:09 Limit 00 3850 – 175 10 FD 10 FD 2017 2017 163847 16:38:47 LIM 00 496 110 84 31 7 105 390.0 191 19 2 07 186 200 183 LIME 10 Feb 10 Feb 2017 163825 Limit 53 33 77 65 +1’5 33 395.0 – 16.38.28 ст 10 Feb – 0 Limit 10 Feb 2017 2017 15.38.48 16:38:41 CT Limit 230 75 56 54 -217 400.0 – – 282 – – NO Limit 00 CT 11 10 Feb 2017 10 Feb 2017 16:39.00 15 38:47 CT 10 Feb 2017 Limit 185 57 55 4 CT -1357 405,0 – 0 NO Limit! 00 10 Feb 2017 ? About This Report Source: CME Group (www.cmegroup.com), February 10, 2017.
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