What is the total cost for one contract? Suppose you purchase the June 2011 put option on orange juice futures with a strike price of $1.75.
Options Cost Per Pound: 0.17
How much does your option cost per pound of orange juice?
What is the total cost for one contract?
Suppose the price of orange juice futures is $1.55 per pound at expiration of the option contract. What is your net profit or loss from this position?
What is your net profit or loss if orange juice futures prices are $1.88 per pound at expiration?