# Question: A What is the 1 year bond forward price in year

a. What is the 1-year bond forward price in year 1?

b. What is the price of a call option that expires in 1 year, giving you the right to pay $0.9009 to buy a bond expiring in 1 year?

c. What is the price of an otherwise identical put?

d. What is the price of an interest rate caplet that provides an 11% (effective annual rate) cap on 1-year borrowing 1 year from now?

b. What is the price of a call option that expires in 1 year, giving you the right to pay $0.9009 to buy a bond expiring in 1 year?

c. What is the price of an otherwise identical put?

d. What is the price of an interest rate caplet that provides an 11% (effective annual rate) cap on 1-year borrowing 1 year from now?

## Answer to relevant Questions

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