The expected future value of an interest rate in a risk-neutral world is greater than it is

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"The expected future value of an interest rate in a risk-neutral world is greater than it is in the real world." What does this statement imply about the market price of risk for

(a) an interest rate and

(b) a bond price. Do you think the statement is likely to be true? Give reasons.

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Options Futures And Other Derivatives

ISBN: 9780130090560

5th Edition

Authors: John C. Hull

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Question Posted: Oct 18, 2024 07:03 AM

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The expected future value of an interest rate in a risk-neutral world is greater than it is

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Options Futures And Other Derivatives

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