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Compute the price of a forward contract on the same zcb

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The price of a zero-coupon bond (ZCB) that matures at time t=10 and that has face value 100 is $61.62

Build an n = 10 binomial model lattice model with the following parameters to compute the price of a forward contract on the same ZCB where the forward contract matures at time t = 4

r0,0 = 5%

u = 1.1

d = 0.9

q = 1 - q = ½

Reference no: EM132548204

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