Question: Please show all steps 3. (Futures vs options) Consider the market for wheat. The current price of a ton of wheat is 250 USD. In

Please show all steps Please show all steps 3. (Futures vs options) Consider the market

3. (Futures vs options) Consider the market for wheat. The current price of a ton of wheat is 250 USD. In the next year, the price will be 310 with probability 1/3 and 220 with probability 2/3. The interest rate between the two years is 5% iv) Compute the price of a put option on a ton of wheat with a strike price of 305 USD. The option can be exercised a year from now

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