Explain why the Black option on futures pricing model is simply a pricing model for options on

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Explain why the Black option on futures pricing model is simply a pricing model for options on instruments with a zero cost of carry?

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Introduction To Derivatives And Risk Management

ISBN: 9781305104969

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Authors: Don M. Chance, Robert Brooks

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Question Posted: Apr 07, 2016 08:37 AM

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Describe two problems in using the Black option on futures pricing model for pricing options on Eurodollar futures?
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Explain why the Black option on futures pricing model is simply a pricing model for options on

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A spot option pricing model such as Black Scholes Merton is a model fo...View the full answer

Introduction To Derivatives And Risk Management

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