Sometime ago you entered in a European call futures option where the futures is for delivery of 50000 barrels of oil. The strike price of the option is $62 per barrel. The option has currently 9 months for expiration and the current Spot price of a barrel of oil is $57. The risk free interest rate is 6% per annum with continuous compounding and the standard deviation of the relative changes in underlying futures price is 25%. 10 points a. Use the Blacks model to obtain the current price of the futures option. b. What happens if you exercise the option when the futures price is $65 per barrel