Use the maximum constraint approach. g. Using the binomial interest rate tree, show at each node the

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Use the maximum constraint approach.

g. Using the binomial interest rate tree, show at each node the put option values of the putable bond (PP = 99). Given your put option values, determine the values at each node of the putable bond as the sum of the option-free bond values found in Question 1.b and the put option values. Do your putable bond values match the ones you found in Question 1.f?

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