In Example 244, suppose that in year 3 the highest and lowest rates were 12 percent and

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In Example 24–4, suppose that in year 3 the highest and lowest rates were 12 percent and 6 percent instead of 11 percent and 7 percent, respectively. Calculate the fair premium on the cap. ($975,515)

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Financial Institutions Management A Risk Management Approach

ISBN: 9781266138225

11th International Edition

Authors: Anthony Saunders, Marcia Millon Cornett, Otgo Erhemjamts

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