Question: Compute the risk-neutral probability that the stock will be down 1 year from now. Round final answer to two decimals. Stock price (S) $ 50.00

Compute the risk-neutral probability that the stock will be down 1 year from now. Round final answer to two decimals.

Stock price (S) $ 50.00
Stock price up (SU) $ 70.00
Stock price down (SD) $ 30.00
Risk-free rate (rf) 5%
Time to expiration in years 1.00
pU
pD

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