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7-4) For an option that has a future as the underlying contract what is the formula for computing p? PLEASE SHOW WORK!!!! A) p B)

7-4)

For an option that has a future as the underlying contract what is the formula for computing p?

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PLEASE SHOW WORK!!!!

A) p B) p C) p D) p E) p Answer: 1-d u-d rXAt u-d rxAt u-d 0-d u-d 0-d d-u

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