Describe ?carefully what happens if the investor exercises

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Reference no: EM13215830

To value a three month American put option on wheat ?futures. The current futures price is 380 cents, the strike price is 370 cents, the?risk-free rate is 5% per annum, and the volatility is 25% per annum. Explain ?carefully what happens if the investor exercises the option after two months.?Suppose that the futures price at the time of exercise is 362 and the most recent ?settlement price is 360.

Reference no: EM13215830

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Describe ?carefully what happens if the investor exercises : Explain ?carefully what happens if the investor exercises the option after two months. ?Suppose that the futures price at the time of exercise is 362 and the most recent ?settlement price is 360.

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