Problema futures price is currently 40 cents it is expected, Ask an Expert

Finance

Problem:

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% ( WITH WORKINGS PLS )

Required:

Question 1: What is the value of a six-month put option with a strike price of 37 cents? (Give two decimal places)

Question 2: What is the value of a six-month call with a strike price of 33 cents? (Give two decimal places)

Note: Please provide full description.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149498

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