A futures price is currently 40 cents it is expected to


A futures price is currently 40 cents. It is expected to move up to 44 cents or down to 34 cents in the next six months. The risk-free interest rate is 6%. What is the value of a six month call option with a strike price of 39 cents?

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Finance Basics: A futures price is currently 40 cents it is expected to
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