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Posted: **May 19th, 2010, 2:07 pm**

Hi there,I want to price american futures options in the commodity market. Now I ask myself:- How good does the Black model for european futures options serve as a proxy?- Assuming deterministic interest rates, is there any price difference at all between european and american calls on a future underlying?- If so, under which circumstances will an early exercise be beneficial?Thanks for your answers!

Posted: **May 19th, 2010, 4:34 pm**

i dont think there is an early exercise premium if the cost of carry is zero.

Posted: **December 16th, 2010, 7:12 pm**

Options, Futures, and Other Derivatives, 7th Edition J.C Hullplease have a look at echapter 16more specifically, 16.9 American Futures Options vs. American Spot Options