2. An asset has, in Cox-Ross-Rubenstein notation, initial price S = 10 , up factor u = 1.5 and d = 0.7. A forward contract is available on this asset. maturing in three time steps. A future contract is also available on this asset, and this future contract also matures in three time steps. The variable returns over the life of these two contracts are shown in the binomial tree below R(2,2) = 1.04 R(1,11.06 R(0,0) = 1.07 R(2,1) 1.08 R(1,0) = 1.06 R(2,0)-108 (a) A zero-coupon bond matures at time T- 3, calculate all values of this 3-zero. That is, calculate all Pj(T - n) for all 03j sn3. (b) For the forward contract, calculate the forward price using the n 0 value of the zero-coupon bond (c) For the future contract, calculate the future price using the backward-induction formula for the future price. 2. An asset has, in Cox-Ross-Rubenstein notation, initial price S = 10 , up factor u = 1.5 and d = 0.7. A forward contract is available on this asset. maturing in three time steps. A future contract is also available on this asset, and this future contract also matures in three time steps. The variable returns over the life of these two contracts are shown in the binomial tree below R(2,2) = 1.04 R(1,11.06 R(0,0) = 1.07 R(2,1) 1.08 R(1,0) = 1.06 R(2,0)-108 (a) A zero-coupon bond matures at time T- 3, calculate all values of this 3-zero. That is, calculate all Pj(T - n) for all 03j sn3. (b) For the forward contract, calculate the forward price using the n 0 value of the zero-coupon bond (c) For the future contract, calculate the future price using the backward-induction formula for the future price