Can you use Black’s model to price American futures options? Explain how are the prices of the European and American futures options are related to each other.

Pricing crude oil futures options

Once you obtain the prices for American call and put futures options from the binomial model, we would like you to use Black’s model to compute the prices of European call and put futures options.

Can you use Black’s model to price American futures options? Explain how are the prices of the European and American futures options are related to each other.