Repeat Problem 13.25 for an American put option on a futures contract. The strike price and the

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Accepted Answer

Step 1: Calculate the time to expiration in years.
The time to expiration is given as 6 months,

Repeat Problem 13.25 for an American put option on a futures contract. The strike price and the futures price are $$\$ 50$$, the risk-free rate is $10 \%$, the time to maturity is 6 months, and the volatility is $40 \%$ per annum.