Futures price of a commodity

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The futures price of a commodity is $90. Use a three-step tree to value:

(a) a 9-month American call option with strike price $93

(b) a 9-month American put option with strike price $93.

The volatility is 28% and the risk-free rate for all maturities is 3% with continuous compounding.

Reference no: EM133073486

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