Exercise 24.3.3 Show that the calibrated binomial interest rate tree generated by the ideas enumerated in Subsection
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Exercise 24.3.3 Show that the calibrated binomial interest rate tree generated by the ideas enumerated in Subsection 23.2.2 (hence the slightly more general tree of Exercise 23.2.3 as well) satisfies the local expectations theory. How about the uncalibrated tree in Fig. 23.6?
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Related Book For 
Financial Engineering And Computation Principles Mathematics Algorithms
ISBN: 9780521781718
1st Edition
Authors: Yuh-Dauh Lyuu
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