Table 232

Sample Wall Street Journal Futures Option Price Quotations

Source: Reprinted by permission of The Wall Street Journal, © 2001 Dow Jones & Company, Inc., September 5, 2001. All Rights Reserved Worldwide.

Ross et al.: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition

VIII. Topics in Corporate Finance

23. Risk Management: An Introduction to Financial Engineering

© The McGraw-Hill Companies, 2002

PART EIGHT Topics in Corporate Finance

The Association of Corporate Treasurers ( has lots of information on a variety of subjects, including risk management.

Suppose you buy the November 80 orange juice futures call option. You will pay $.024 per pound for the option (they're actually sold in multiples of 15,000, but we'll ignore this). If you exercise your option, you will receive a futures contract on orange juice and the difference between the current futures price and the strike price of $80 in cash.

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