What is value of six-month european put option

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Reference no: EM132064160

A futures price is currently 50. At the end of six months it will be either 56 or 45. The risk-free interest rate is 3% per annum (continuously compounded). What is the value of a six-month European put option with a strike price of 49? How would you hedge this option if you bought it?

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Reference no: EM132064160

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What is value of six-month european put option : What is the value of a six-month European put option with a strike price of 49? How would you hedge this option if you bought it?

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