Question: Please refer to the following binomial lattice term structure model, and then answer the following questions. 6.0% P 7.5% 5.4% The upper probability is:

Please refer to the following binomial lattice term structure model, and then answer the following questions.

Please refer to the following binomial lattice term structure model, and then answer the following questions. 6.0% P 7.5% 5.4% The upper probability is: 9.38% 6.75% 4.86% p=0.5 11.72% 8.44% 6.08% 4.37% Compute P32, which is the Arrow-Debreu security, paying 1 dollar at time 3 and state 2 (refer to the node with interest rate 8.44% on the graph).

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