Repeat the previous problem for n 50 What is the risk neutral probability that S1 $80 S1 $120 In previous problem Let S $100, 0 30, r 0 08, t 1, and 0 Using equation (11 12) to compute the probability of reaching a terminal node and Suidni to compute the price at that node, plot the risk neutral di...

For n 50 we have h 002 10450 09600 Now we can calculate p 04 ...

Repeat the previous problem for n = 50. What is the risk-neutral probability that S1 < $80?

Question:

Repeat the previous problem for n = 50. What is the risk-neutral probability that S1 < $80? S1 > $120?
In previous problem
Let S = $100, σ = 0.30, r = 0.08, t = 1, and δ = 0. Using equation (11.12) to compute the probability of reaching a terminal node and Suidn−i to compute the price at that node, plot the risk-neutral Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...