Using the analytic representation of F(t, T) in (7.4.7), show that the discount bond price can be

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Using the analytic representation of F(t, T) in (7.4.7), show that the discount bond price can be expressed as

B(t, T) = B(0, T) B(0, t) T + [ n xp(-2[/" ['a',(u, s) duds (u, s) dz, (u) ds]). T

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Mathematical Models Of Financial Derivative

ISBN: 9783642447938

2nd Edition

Authors: Yue-Kuen Kwok

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Question Posted: Nov 30, 2023 07:31 AM

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Using the analytic representation of F(t, T) in (7.4.7), show that the discount bond price can be

Question:

B(t, T) = B(0, T) B(0, t) T + [ n xp(-2[/" ['a',(u, s) duds į (u, s) dz, (u) ds]). T

Step by Step Answer:

To derive the expression for the discount bond price BtT using the analytic representation of FtT we...View the full answer

Mathematical Models Of Financial Derivative

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