(Solution) - Consider the Eurodollar futures contract in Example 24 6 a Compute the -(2025 Original AI-Free Solution)

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Consider the Eurodollar futures contract in Example 24.6.
a. Compute the time 1 futures rates in the up and down states s [ifut(1) = E?[R(2)]].
b. Compute the forward rate agreement rate at time 1 for maturity 2 in the up and down states. Show that these two are the same because both contracts mature in one period.