For the single period evolution in this figure compute the, Finance Basics

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For the single period evolution in this figure compute the

Question: For the single period evolution in this figure, compute the spot rates at time 0 and at time 1 in both the up and down states. Prove that this tree is arbitrage-free (ignore round errors beyond two decimal places in the computation of the pseudo-probabilities).

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Finance Basics: For the single period evolution in this figure compute the

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Finance Basics: For the single period evolution in this figure compute the

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