Question: Problem 2 Consider the standard numerica TO FIND binomial Problem example 45 Easy . I (A) Compute the risk neutral See the probable lifes x

Problem 2 Consider the standard numerica TO FIND binomial Problem example 45 Easy . I (A) Compute the risk neutral See the probable lifes x pr (u) and ma binomial file ! (or class use them to define the notes) , risk heatral expectations operatorAside, Consider to put option you should I with strike price check that Ktbo written on To' the tree. diagram is Correct for European putt K = 50 exercise at 1 5 USE F to find the arbitrage free price P - Bound your answer to the nearest penny,Problem 3 Thes concerns Forward Contract (To find ) written by 's i Problem 2. problem BA) Display the tree diagrams 3 B ) The problem is to find the arb trage free price for F te delivered price at the l. " Compute If and round to the nearest penny USE EX to solve this problem. Consult the lecture modes on the general forward / futures contract

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