Compute fair value of an american call option with strike

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Problem 1: Do the call and put option prices of Questions 1 and 2 satisfy put-call parity?

Problem 2: Compute the fair value of an American call option with strike K = 110 and maturity n = 10 periods where the option is written on a futures contract that expires after 15 periods. The futures contract is on the same underlying security of the previous questions.

Problem 3: What is the earliest time period in which you might want to exercise the American futures option of problem 1?

Problem 4: Compute the fair value of a chooser option which expires after n = 10 periods. At expiration the owner of the chooser gets to choose (at no cost) a European call option or a European put option. The call and put each have strike K = 100K=100 and they mature 5 periods later, i.e. at n = 15

Reference no: EM132935672

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