Suppose that in Example 29.3 of Section 29.2 the payoff occurs after one year (i.e., when the
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Suppose that in Example 29.3 of Section 29.2 the payoff occurs after one year (i.e., when the interest rate is observed) rather than in 15 months. What difference does this make to the inputs to Black's models?
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There are two differences The discounting is done over a 10year period in...View the full answer
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