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Find the value of a European call and Put option contract with a strike price of $60 using a two-step binomial tree model for futures
Find the value of a European call and Put option contract with a strike price of $60 using a two-step binomial tree model for futures price is currently 60 and its volatility is 30%. The risk-free interest rate is 8% per annum. Verify putcall parity relationships for the problem and early exercise of American options
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