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. Question 7 [10 points]. Under the risk??neutral probability measure Q, the short rate process satis?es 7r+A= (1??pZ)f*+pZTt+U/E?:+A where p: : 1 ?? 7* A
. Question 7 [10 points]. Under the riskâ??neutral probability measure Q, the short rate process satis?es 7°r+A= (1â??pZ)f*+pZTt+U\/Eâ?¬:+A where p: : 1 â?? 7* A and fan 3 N(0, 1). Under the phys...
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