Question: a. What are the pseudo- probabilities? b. Show that the stock price is its discounted expected value using these pseudo- probabilities.

a. What are the pseudo- probabilities?
b. Show that the stock price is its discounted expected value using these pseudo- probabilities.

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a Pseudo probabilities are the numbers and 1 where 1 R D U D U While D are the up and ... View full answer

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