Question: 2. For a binomial tree with equity returns continuously compounded with 0.2, and interest rates quarterly compounded at annual rate r = 0.03, what is

2. For a binomial tree with equity returns continuously compounded with

2. For a binomial tree with equity returns continuously compounded with 0.2, and interest rates quarterly compounded at annual rate r = 0.03, what is the up shift in stock price, down shift and the risk-neutral probability of the up shift, if the interval on the tree is quarterly? Use the Cox-Ross-Rubinstein model for this

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