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Calculate the price of an option that caps the 3 -month rate, observed in 15 months for the 15-18 month period, at 13% (quoted with
Calculate the price of an option that caps the 3 -month rate, observed in 15 months for the 15-18 month period, at 13\% (quoted with quarterly compounding) on a principal amount of$1,000. The forward ...
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