You are given: (i) The current 1-year futures price on a stock is currently $34. (ii) The continuous rate of dividends on the stock, , is 3%. (iii) The continuous rate of interest, r, is 4%. (iv) The stock volatility, , is 0.3.

1- Construct a binomial model with T = 1 , and n =1, and find the price of a 35-strike European call option on a futures contract on this stock, by constructing a replicating portfolio consisting of a units of a futures contract and amount of cash invested in bonds.

2. Construct a binomial model with T = 1 , and n =1, and find the price of a 35-strike European call option on a futures contract on this stock, by constructing a replicating portfolio consisting of a units of the sock and amount of cash invested in bonds.

3-Construct a binomial model with T = 1 , and n =1, and find the price of the 35-strike call option using the risk neutral probability