Questionsshould be answered by building ann=10-period binomial model for the short-rate,ri,j. The lattice parameters are:r0,0=5%,u = 1.1,d = 0.9 andq =1-q = 1/2.

1Compute the price of a zero-coupon bond (ZCB) that matures at timet = 10and that has face value 100.

2Compute the price of a forward contract on the same ZCB of the previous question where the forward contract matures at timet = 4.

3Compute the initial price of a futures contract on the same ZCB of the previous question where the forward contract matures at timet = 4.

4Compute the price of an American call option on the same ZCB of the previous three questions. The option has expirationt = 6and strike= 80.

Give your answer rounded to 2 decimal places. For example, if you compute the answer to be 73.2367%, submit 73.24.

Q1 = 61.62need Q2-Q4