Please solve question number 3

11.72% 9.38% 8.44% 7.5% 6.75% 6.08% 6.0% 5.4% 4.86% 4.37% (1 - p) The upper probability is: p = 0.5 [3,2], Compute P21, 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). Round your answer to the fourth decimal place. Enter answer here 3. Continued Question 2: Consider a forward-start swap, starting at time t=1 and ending at time t=3 1. Notional principal is 100,000. 2. Fixed rate of swap is 7% 3. Payments at t = i for i=2, 3 are based as usual on fixed rate minus floating rate that prevail at t=i1 What is the value of the swap at t = 0