C. allows investors to realize arbitrage pOIS sh 6. If the assumed volatility is changed as Black requested in Task 4, the forward ratcs in Exhibit 3 will most likely: A. spread out. B. remain unchanged. C. converge to the spot rates ak4 UbdateExhibt3to reflect the current volatlity,which. snowy% EXHIBIT 3 Current 1.2500% Binomial Interest Rate Tree Fit to the Yield Curve (Volatility = 10%) Year 1 1.8229% 1.4925% Year 2 1.8280% Node 2-2 1.2254% Year 3 2.6241% Node 3-2 1.7590% Node 3-4 Year 4 Node 4-1 4.2009% 3.4394% 2.8159% Node 4-5 C. allows investors to realize arbitrage pOIS sh 6. If the assumed volatility is changed as Black requested in Task 4, the forward ratcs in Exhibit 3 will most likely: A. spread out. B. remain unchanged. C. converge to the spot rates ak4 UbdateExhibt3to reflect the current volatlity,which. snowy% EXHIBIT 3 Current 1.2500% Binomial Interest Rate Tree Fit to the Yield Curve (Volatility = 10%) Year 1 1.8229% 1.4925% Year 2 1.8280% Node 2-2 1.2254% Year 3 2.6241% Node 3-2 1.7590% Node 3-4 Year 4 Node 4-1 4.2009% 3.4394% 2.8159% Node 4-5