Question: This is a financial math question There is one liability of L/1.1 at time 1. Find asset payments at times 0 and 2 so that

This is a financial math question

There is one liability of L/1.1 at time 1. Find asset payments at times 0 and 2 so that the portfolio can be fully immunized at i=.1 (a) A0=L,A2=L (b) A0=(L/2).12,A2=L/2 (c) A0=L/2,A2=L/2.2 (d) A0=LA2=L/1.12 (e) none of these

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