The CBOT corn futures
contract is a contract for future physical delivery of 5,000 bushels of corn; however, the vast majority of the futures positions
are offset well before delivery. The CBOT Corn futures contract is priced in dollars and cents per bushel. It trades in 1/4s,
but is quoted in 1/8s.
417-4 means $4.17 4/8 or $4.17 1/2
The CBOT corn options contract controls
5,000 bushels of corn based on the underlying futures contract. The strike prices trade in 5-cent intervals for the first
two months, and 10-cent intervals for all other months. The premium is priced in cents per bushel. It options trades in 1/8s,
and the price is quoted in 1/8s.
14-5 means 14 and 5/8th of a cent, and
$.14625 X 5,000
bushels = $731.25