Question: 9. The risk neutral probability is equal to 0.6 and the risk free rate is 5%. Furthermore the present value of cash flows is equal

9. The risk neutral probability is equal to 0.6 and the

9. The risk neutral probability is equal to 0.6 and the risk free rate is 5%. Furthermore the present value of cash flows is equal to V=100. If d = 1/u, then what is the value of Vin the downstate in the next period? Please round your answer to one decimal place and use a period to indicate the decimal place (e.g. 100.7 instead of 100,7). Enter answer here

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