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A company can buy an option for the delivery of 1 million units of a commodity. In 3 years at $25/unit. The three year futures
A company can buy an option for the delivery of 1 million units of a commodity. In 3 years at $25/unit. The three year futures price is $24. Interest rates are 5% and futures volatility is 20%. How much is the option worth? I do not have full access to Coursehero and therefore cannot use the references already listed there.
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