Question: Please help me to answer this The binomial tree for the 6-month spot rate over the next 6 months is given as follows. The interest

Please help me to answer this

The binomial tree for the 6-month spot rate over the next 6 months is given as follows. The interest rates are expressed with semiannual compounding, and p is the risk-neutral probability of a rate increase. Answer the following questions with explicit description of all computations. today 6 months from today Price: 950.4208 p = 0.80224 5.5% Price: 973.24 5% 1 - p 4.5% Price: 978 1 Suppose there is a 6-month forward contract to buy the 1-year ZCB above for a fixed price of X dollars, 6 months from today. Express today's value 1 of this contract as a function of X. (ZCB= Zero Coupon Bonds) 2 Derive the forward price (for delivery 6 months from today) of the 1-year ZCB above using the results in 1

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