Shau_2207
Member
Hello David, I have a question under Topic Term Structure Science under that LOS- Arbitrage pricing of derivatives over multiple periods. Page 23
i am unable to follow the attached eq, how do we calculate bond value of P(1,1) and P (1,0) for given risk neutral probabilities. In exam will we be getting these values or we would need to find them?
i am unable to follow the attached eq, how do we calculate bond value of P(1,1) and P (1,0) for given risk neutral probabilities. In exam will we be getting these values or we would need to find them?