Suppose You Purchase the November Call Option on Orange Juice

question 25

Multiple Choice

Suppose you purchase the November call option on orange juice futures with a strike price of 150 at the price shown in the table below.What will be your profit or loss on this contract if the price of orange juice futures is $0.616 per pound at expiration of the option contract?
Futures Options
Orange juice: 15,000 lbs,U.S.cents per lb.

• A) loss of $2,107.50
• B) loss of $1,717.50
• C) no profit or loss
• D) profit of $1,717.50
• E) profit of $2,107.50

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United States

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