Call Options on Futures

Call Options on Futures

DePaul Insurance Company purchased a call option on an S&P 500 futures contract. The option premium is quoted as $6. The exercise price is 1430. Assume the index on the futures contract becomes 1440. Should DePaul exercise the call option or let it expire? What is the net gain or loss to DePaul after accounting for the premium paid for the option?

Call Options on Futures