Solution-How much is the option worth

How much is the option worth

Reference no: EM131044434

A company can buy an option for the delivery of 1 million units of a commodity. In 3 years at $25/unit. The three year futures price is $24. Interest rates are 5% and futures volatility is 20%. How much is the option worth?

Reference no: EM131044434

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How much is the option worth : A company can buy an option for the delivery of 1 million units of a commodity. In 3 years at $25/unit. The three year futures price is $24. Interest rates are 5% and futures volatility is 20%. How much is the option worth?

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How much is the option worth

Reference no: EM131044434

Reference no: EM131044434

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