Question: Q5. This question uses the interest-rate tree in the spreadsheet ClassEx-LN04. Risk-neutral probabilities are given by q = 0.5. a) What is the price, per

Q5. This question uses the interest-rate tree in the spreadsheet ClassEx-LN04. Risk-neutral probabilities are given by q = 0.5. a) What is the

Q5. This question uses the interest-rate tree in the spreadsheet ClassEx-LN04. Risk-neutral probabilities are given by q = 0.5. a) What is the price, per $100 of notional, of a 4-year floor with semi-annual settlement and strike rate KF = 0.0360? Q5. This question uses the interest-rate tree in the spreadsheet ClassEx-LN04. Risk-neutral probabilities are given by q = 0.5. a) What is the price, per $100 of notional, of a 4-year floor with semi-annual settlement and strike rate KF = 0.0360

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