Question: I need 100% correct answer will be upvote Futures on one of the Fortune 500 companies are correctly trading at USD 88 per contract. The

I need 100% correct answer will be upvote Futures on one

I need 100% correct answer will be upvote

Futures on one of the Fortune 500 companies are correctly trading at USD 88 per contract. The volatility of these futures contracts is 21%. What is the price of a one-year European call option with a USD 85 strike price on this futures contract using the one-step binomial tree model if the risk-free rate is 3% per year

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