What is the total cost for one contract

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Reference no: EM132015762

Suppose you purchase the June 2014 put option on corn futures with a strike price of $5.15. Assume your purchase was at the last price.

How much does your option cost per bushel of corn? (Round your answer to 5 decimal places, e.g., 32.16161.)

Option cost $ per bushel

What is the total cost for one contract? Assume each contract is for 5,000 bushels. (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Total cost $

Suppose the price of corn futures is $4.94 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.)

ProfitLoss $

What is your net profit or loss if corn futures prices are $5.23 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.)

LossProfit $

Reference no: EM132015762

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