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Describe currency options-futures options-index options

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Describe currency options, futures options, index options, and commodity options. Clearly state which variables in these securities correspond with the binomial pricing inputs used for stock options. Provide rationale for your determination

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The assignment is about Option and its various categories on the basis of the underlying asset.Option is deivative instrument which is used by speculator , hedger, investor to averse the risk. Options are more expensive than forward contract and futures.There are various pricing models of options which are based on strike price, volatility, etc. One of them is binomial pricing model which computes the present value of option by using probabilities of expected future spot price

Reference no: EM131013156

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