Verify that the price of the 12% interest rate cap in Figure 25.6 is $3.909.

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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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Question Posted: Aug 12, 2015 02:58 AM

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Verify that the price of the 12% interest rate cap in Figure 25.6 is $3.909.

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The value of the Year 2 cap payment has been shown to be V 2 195...View the full answer

Derivatives Markets

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