23.3 Use of risk-Neutral Arguments The process for the instantaneous short rate. r. in the traditional risk-neutral world defines the process for the whole zero curve in this world If P(t, T)is the price at time t of a zero coupon bond maturing at time t P()=E| Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 23.3 Use of Risk-Neutral Arguments • The process for the instantaneous short rate, r, in the traditional risk-neutral world defines the process for the whole zero curve in this world • If P(t, T ) is the price at time t of a zero￾coupon bond maturing at time T P t T E e  r T t ( , )  ( ) = − −