Oil plants sell call options and get a premium. The spot prices of the three ABC options in September were all lower than the exercise price of 740 cents/bushel. Buying the price in the spot market is more favorable to the buyer, so the buyer will not exercise this right. At this time, the seller will make a profit, that is, a premium of 7 cents per bushel. The spot price of item D is 780 cents/bushel, which is much higher than the exercise price of 740 cents/bushel. The cost of the option buyer is 7 cents/bushel, and the option buyer can make a profit when exercising: 780-740-7=33 cents/bushel, so the buyer will exercise, and the corresponding seller's loss is 33 cents bushel. Oil plants can also choose to buy call options and close their positions before the option contract expires. At this time, the price of the call option is 42 cents/bushel, and the loss of the oil factory at this time is 42-7=35 cents/bushel.
In the actual transaction of options, the option seller sells the option to get the option premium, and the seller needs to pay the deposit, while the option buyer only needs to pay the option premium, so the option seller has the capital cost. Although the option trading account only shows the profit and loss of option trading, investors also need to consider the capital cost of occupying the margin.
If the answer is wrong or there is something you don't understand, please communicate and point out.