Problem:
A futures price is currently 40 cents. It is expected to move up to 44 cents or down to 34 cents in the next six months. The risk-free interest rate is 6% ( WITH WORKINGS PLS )
Required:
Question 1: What is the value of a six-month put option with a strike price of 37 cents? (Give two decimal places)
Question 2: What is the value of a six-month call with a strike price of 33 cents? (Give two decimal places)
Note: Please provide full description.