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Compute the prices of a forward contract and a futures contract on the ZCB described below, where the forward contract matures at time t=4 for both, the forward and future option.

Zero-Coupon Bond: Price=$61.62, matures t=10, Rate=5%, u=1.1, d=0.9, q=.5, p=1-q

Note: Answered building a n=10-period binomial model for the short-rate Ri,j

Financial Management, Finance

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