Compute the fair value of an american call option with


1. Compute the fair value of an American call option with strike K=110 and maturity n=10 periods where the option is written on a futures contract that expires after 15 periods. The futures contract is on the same underlying security of the previous questions.

2. What is the earliest time period in which you might want to exercise the American futures option of Question 1?

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Financial Management: Compute the fair value of an american call option with
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The solution is on determination of an American call option using the black scholes model. The solution has been done using Microsoft Excel.

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