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Construct a futures market in such a way that the number of rainy days for a given month in Des Moines, Iowa, is (hopefully) accurately
- Construct a futures market in such a way that the number of rainy days for a given month in Des Moines, Iowa, is (hopefully) accurately predictable.
- Suppose that for a group of European options, the strike price is $100, the asset is currently trading at $112, and the interest rate is 15%. What is the lower bound for:?
a. The call option?
b. The put option?
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