Question: Repeat Problem 12.25 for an American put option on a futures contract. The strike price and the futures price are $50, the risk-free rate is

Repeat Problem 12.25 for an American put option on a futures contract. The and the futures price are $50, the risk-free rate is 10%, the time to is six months, and the volatility is 40% per annum.
In problem 12.25
a. Calculate u, d, and p for a two step tree
b. Value the option using a two step tree.
c. Verify that DerivaGem gives the same answer
d. Use DerivaGem to value the option with 5, 50, 100, and 500 time steps.

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