Given the tree at the begining of this chapter, what is the value of a zero coupon bond maturing in six months?
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Q1: What is the risk neutral probability p∗
Q2: Are forward interest rates equal to the
Q3: Using risk neutral pricing obtain the value
Q4: You are given the following interest rate
Q6: Assuming that there is a risk premium
Q7: from a given risk neutral tree
Q8: You are given the following interest rate
Q9: For pricing purposes how important is it
Q10: Why are forward interst rates and the
Q11: What is a risk neutral probability?
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