Question: A stock that does not pay any dividend is currently priced at $57. After one period, the stock price will increase to $96 or decrease

A stock that does not pay any dividend is currently priced at $57. After one period, the stock price will increase to $96 or decrease to $36. A bond that will pay $100 after one period is trading at $95. Find the risk-neutral probabilities of stock price up and down movements. Value an at-the-money European call option. Value a European put option with strike price $65. Both options mature after one period.

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