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How to compute the price of a forward contract on same zcb

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Reference no: EM132579230

Building an n = 10 - period binomial model for the short - rate, rinj. The lattice parameters are: 10.0 5%, u = 1.1, d = 0.9 and q = 1- q = 1/2.

Question 1: Compute the price of a forward contract on the same ZCB of the previous question where the forward contract matures at time t = 4.

Reference no: EM132579230

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