Explain why, in the binomial pricing theory, the probabilities of an upward move versus a downward move

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Explain why, in the binomial pricing theory, the probabilities of an upward move versus a downward move are not important.

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:43 AM

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Explain why, in the binomial pricing theory, the probabilities of an upward move versus a downward move

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Fundamentals of corporate finance

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