A Futures price is currently €80. Over each of the next two 3 month periods it will rise or fall by 10%. The risk free rate is 8% p.a. (i)Using replicating portfolio techniques, find the value of a 6...

1. A Futures price is currently €80. Over each of the next two 3 month periods it will rise or fall by 10%. The risk free rate is 8% p.a.

      (i)Using replicating portfolio techniques, find the value of a 6 month

                European call option on the futures with strike €80.

      (ii)Verify your answer using risk-neutral valuation.

      (iii) Would your answer change if the call was American?

is this question valued as a future or a call option ? As in which Formula