Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
Calculate the price of a six-month American call option on gold futures when the current futures price is $260 per troy ounce, the strike price is
Calculate the price of a six-month American call option on gold futures when the current futures price is $260 per troy ounce, the strike price is $270, the risk-free rate is 8 percent per annum, and the volatility is 30 percent per annum. Using the binomial tree approach with a time interval of three months. Use the tree diagrams to show your calculation results on each node.
(i) p = (ii) u = (iii) d =