A share price is currently $75. At the end of three months, it will be either $59

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A share price is currently $75. At the end of three months, it will be either $59 or $92. What is the risk-neutral probability that the share price increases? The risk-free interest rate is 4% p.a. with continuous compounding.

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Introduces Quantitative Finance

ISBN: 978-0470319581

2nd edition

Authors: Paul Wilmott

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Question Posted: Sep 23, 2020 05:51 AM

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A share price is currently $75. At the end of three months, it will be either $59

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92 U 12267 75 59 D 7867 75 R ...View the full answer

Introduces Quantitative Finance

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