Question: loday is t = 0. The table below indicates the prices (Price2) that you could lock in today to pay at t = 2 in

loday is t = 0. The table below indicates the prices (Price2) that you could lock in today to pay at t = 2 in order to receive $100 at the indicated Maturity Year for 30 different contracts. For example, the first row indicates that you can lock in at t = 0 a contract where you agree to pay 99 at t = 2, and you get back 100 att = 3. The second row indicates that you can lock in at t = 0 a contract where you agree to pay 98 at t = 2 and you get back 100 at t = 4, and so on. Price2 Maturity Year 99 3 98 4 97 5 71 31 70 32 Product X pays out the following 30 cash flows: (200/99) at t = 3, (200/98) at t = 4, ..., (200/71) at t=31, and 200/70 at t = 32. You are also told that at t=0 the fair price of a 2-year zero coupon bond with face value of 240 is 200. What is the fair price of Product X at t = 0? 40 50 60 70

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