23-112 What should be the price of a three-year 6 percent floor if the current (spot) rates are also 6 percent? The face value is $5,000,000,and time periods are zero,one,and two.
A) $25,000.
B) $21,598.
C) $22,462.
D) $44,460.
E) $66,030.
Correct Answer:
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