Question: Please answer all steps with work shown. Will give thumbs up Problem FORW-4B LR2022-09 This is a continuation of an example from Chapter 5 .

 Please answer all steps with work shown. Will give thumbs up

Please answer all steps with work shown. Will give thumbs up

Problem FORW-4B LR2022-09 This is a continuation of an example from Chapter 5 . Today is "time 0 ". The following securities are given: Questions (a1) Complete the following table. In words: Use the 15-delivery-price forward contract and the bond in order to replicate the 25-delivery-price forward contract. (a2) We infer from this that the following relationship between the three prices should be satisfied. (Complete.) D(0,T,25)= (Algebraic expression) (b1) Complete the following table. Related problem: POS-43 (Note 2.2) In words: Use the two forward contracts to replicate the payoff of 10 bonds. (b2) We infer from this that the following relationship between the three prices should be satisfied. (Complete.) 10B(0,T)= Problem FORW-4B LR2022-09 This is a continuation of an example from Chapter 5 . Today is "time 0 ". The following securities are given: Questions (a1) Complete the following table. In words: Use the 15-delivery-price forward contract and the bond in order to replicate the 25-delivery-price forward contract. (a2) We infer from this that the following relationship between the three prices should be satisfied. (Complete.) D(0,T,25)= (Algebraic expression) (b1) Complete the following table. Related problem: POS-43 (Note 2.2) In words: Use the two forward contracts to replicate the payoff of 10 bonds. (b2) We infer from this that the following relationship between the three prices should be satisfied. (Complete.) 10B(0,T)=

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