Weber states: “Alternatively, we could consider options on the Eurodollar futures, which are an actively traded MRR-based derivative contract reflecting the three-month MRR rate anticipated on the settlement date of the contract. Two consecutive three-month contracts can be combined ...Read more

Burr describes the two-period binomial model to Laurens and provides information related to Lafayette Corporation’s common stock and options on that stock (presented in Exhibit 1). Lafayette stock does not pay a dividend. Exhibit 1 Information on Lafayette ...Read more