Price of european call option on the futures contract

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The price of a futures contract is currently $50 and will move either up or down by 10% at the end of one month. The risk free interest rate is 10%.

(1) What is the price of a European call option on the futures contract with a strike price of $52 that expires in one month?

(2) What is the price of a European put option on the futures contract with a strike price of $52 that expires in one month?

Reference no: EM131556548

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