What is value of December call option on T-bond futures

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Assume that the volatility rate for T-bond futures is 10%. Using your ten-step binomial tree, what is the value of the December call option on T-bond futures with an exercise price of 134? Given that the actual option price is different than the one you computed in part a, the volatility rate must be different than 10%. What is the volatility rate that sets the option's value equal to the actual option price?

Reference no: EM131848031

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