Question: -or'--- 1-n+1 The following formula will be needed: 1) An asset with price S at time 0 pays some cashflows. The cashflows are worth Ca

 -or'--"- 1-n+1 The following formula will be needed: 1) An asset

-or'--"- 1-n+1 The following formula will be needed: 1) An asset with price S at time 0 pays some cashflows. The cashflows are worth Ca with probability p and Cb with probability 1- p and are paid annually from time 1 to time T Provide a formula for the asset price S by assuming that the (annualized) discount rate is r. 2) An asset with price S at time 0 pays some cashflows. The cashflows are worth C, are paid every 6 months, and are perpetual. Provide a formula for the asset price S by assuming that the (annualized) discount rate is r. 3) An asset with price S at time 0 pays some cashflows. Cashflows worth Ca are paid annually from time 1 to time T. In addition, cashflows worth Cb are paid annually from time T +1 to infinity (perpetuity). Provide a formula for the asset price S by assuming that the (annualized) discount rate is r. 4) An asset with price S at time 0 pays some cashflows. The cashflows are worth C1 with probability pi, C2 with probability p2, and Cs with probability 1-pi-P2. These cashflows are paid every n months (perpetuity). Provide a formula for the asset price S by assuming that the (annualized) discount rate is r 5) An asset with price S at time 0 pays some cashflows. Perpetual cashflows worth Ca are paid every odd years (1, 3, 5,...). In addition, perpetual cashflows worth C, are paid every even years (2, 4, 6,...). Provide a formula for the asset price S by assuming that the (annualized) discount rate is r

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