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@David Harper CFA FRM Thank you, David! I understand now why the discount rates are so much more important than the spot rates. The discount rates are unique by maturity, the interest rates depend on the compounding freq. Its a bit discomforting to realize that I picked up this key concept this...

@David Harper CFA FRM I have a question on the Law of one Price. Since the discount factors incorporate the compounding frequency information, a d(1) with annual compounding is NOT equal to a d(1) with semiannual compounding, correct? Mathematically, the first one is 1/(1+r), the second one is...

It was the upper bound for a European Put. Answer = Kexp(-rt). I think came out to be 64 something. K was 68.