Consider a 2-mouth call futures option with a strike price of 40 when the risk-free Interest rate

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Consider a 2-mouth call futures option with a strike price of 40 when the risk-free Interest rate is 10% per annum. The current futures price is 47. What is a lower bound for the value of the futures option if it is

(a) European and

(b) American?

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Options Futures And Other Derivatives

ISBN: 9780131499089

6th Edition

Authors: John Hull

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Question Posted: Oct 19, 2024 08:00 AM

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Consider a 2-mouth call futures option with a strike price of 40 when the risk-free Interest rate

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Options Futures And Other Derivatives

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