[HELPNEEDED]

Originally Posted by wpgflamesfan

I'll take a shot at it:

So you're original value is 75,000
You're discount rate for 3 months would be = 1.06^(1/4) = 1.4673846%

Here are you're two binomial trees (the bottom one assumes you by the bank protection):




Since $75,760-$72,846 > $2000 (the cost of the bank protection) it would be beneficial for you to purchase the bank protection.

I edited the question, sorry just the way i was reading it wrong the bank is willing to insure your investment for 2000.

Give me 10 minutes and I'll throw the answer up here.