Is the caplets value equal to the expected discounted value of its payoff at maturity using the actual probabilities If not, provide and explain the correct answer ...

No the caplets value is not equal to the expected discounted value of its payoff a ...

Is the caplets value equal to the expected discounted value of its payoff at maturity using the

Question:

Is the caplet’s value equal to the expected discounted value of its payoff at using the actual probabilities? If not, provide and explain the correct answer.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...