Question: 19. Use a binomial tree to value an option on the Dow Jones Industrial Average (DJIA) index. The dividend yield is 3% per annum,

19. Use a binomial tree to value an option on the Dow Jones Industrial Average (DJIA) index. The dividend yield is 3% per annum, the index volatility is 14% per annum, the time step is 2 months, and the risk-free interest rate is 5% per annum. What is the probability of an up move?

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