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Calculate the value of a six-month European put on oil futures with a strike price of $72? The futures price is currently $70 per barrel,
Calculate the value of a six-month European put on oil futures with a strike price of $72? The futures price is currently $70 per barrel, its volatility is 20% p.a., and the risk-free interest rate is 4% p.a. Assume that each option is for 1,000 barrels of oil.
Explicitly show the results of your calculations for the intermediate values d1 and d2.
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