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Options on commodity futures
Under what conditions can american style options on commodity futures be treated like their european equivalents? Any hints in literature?
Options on commodity futures
What's the difference? ... an American can be exercised early. But does additional optionality have any economic benefit? The story continues at http://www.associatedcontent.com/articl ... html?cat=4
Options on commodity futures
Will, did not check out the link but surely only for Call options?If the underlying is at zero and can't go negative, early exercise of the Put option should have some value compared to holding it any further?Cheers,Alk