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10.20 Suppose the S&P 500 futures price is 1000,=30%,r=5%,=5%,T=1, and n=3. a. What are the prices of European calls and puts for K=$1000 ? Why
10.20 Suppose the S\&P 500 futures price is 1000,=30%,r=5%,=5%,T=1, and n=3. a. What are the prices of European calls and puts for K=$1000 ? Why do you find the prices to be equal? b. What are the prices of American calls and puts for K=$1000 ? c. What are the time-0 replicating portfolios for the European call and put
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