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Problem 3 . ( 1 4 points ) Consider the following rate and price tree for a straight bond. Find the missing prices for a
Problem points Consider the following rate and price tree for a straight bond.
Find the missing prices for a European put option on the bond. The option expires at the end of
the second year and has an exercise price of $ Also, determine whether or not it would be
optimal for the holder to exercise early at the end of the first year at node
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