Suppose you purchase the June 2014 call option on corn futures with a strike pri

Question

Suppose you purchase the June 2014 call option on corn futures with a strike price of $4.90 at the last price of the day. Use Table 23.2

How much does your option cost per bushel of corn? (Do not round intermediate calculations. Round your answer to 5 decimal places, e.g., 32.16161.)

Suppose the price of corn is $4.84 per bushel at expiration of the option contract. What is your net profit or loss from this position? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answer as a positive value.)

What is your net profit or loss if corn futures prices are $5.19 per bushel at expiration? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Enter your answeras a positive value.)

Suppose you purchase the June 2014 call option on corn futures with a strike price of $4.90 at the last price of the day. Use Table 23.2

Explanation / Answer

Option cost is calculated through binomial model ,BSM model and it can easily be calculated through the option premium paid on it.

Please provide the table so that we can calculate the option cost then total cost and then profit/loss

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