Consider a four-month futures put option with a strike
Consider a four-month futures put option with a strike price of 100 when the risk-free interest rate is 10% per annum. The current futures price is 87. What is a lower bound for the value of the futures option if it is (a) European and (b) American?
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consider a four-month futures put option with a strike price of 100 when the risk-free interest rate is 10 per annum
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