The spot price of a stock is 50 and the futures contract is


The spot price of a stock is $50 and the futures contract is on 100 shares. What is the price of a 9-month American put on this futures contract if the strike is $5300? The monthly volatility of the futures price is 9%. The risk free rate is 8% per annum continuous. Use a 3-step binomial model. (showing the math would be great)

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Financial Management: The spot price of a stock is 50 and the futures contract is
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