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An option has a gold futures contract as the underlying asset. The current 1-year gold futures price is $600/oz, the strike price is $620, the
An option has a gold futures contract as the underlying asset. The current 1-year gold futures price is $600/oz, the strike price is $620, the continuously compounded risk-free interest rate is 7%, volatility is 12%, and the tine to expiration is 1 year. Using a one-period binomial model, find the price of the call. Hint: $24.76
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