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Problem 12.18 The futures price of a commodity is S00. Use a three-step tree to value (a) a nine-month American call option with strike price

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Problem 12.18 The futures price of a commodity is S00. Use a three-step tree to value (a) a nine-month American call option with strike price S93 and (b) a nine-month American put option with strike price S93. The volatility is 28% and the riskfree rate (all maturities) is 396 with continuous compounding

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