Q2 b). I figured V(s)=-V(l) so I found V(l) = (Kr-Ko)e^(T-r). The value I got for V(s) was 0.9581. I had Ko = 47.8967 and Kr = 46.92. In both Ko and Kr I had taken the R2 income into account. However, the final answer I'm supposed to get is apparently 0.99966. I'm not too sure where I'm going wrong.
K0 should give you an answer of 47.9731 and Kr should give you an answer of 46.96 . Considering your answers are so similar - are you not maybe rounding?
\[ Vs = (K0 − K3) e^−0.08× 3/12 = 0.996689 = R1 \]