Question: D Question 5 7 pts If using the binomial model to value an option, assume a stock can move up 11% or down 10%. The

D Question 5 7 pts If using the binomial model to value an option, assume a stock can move up 11% or down 10%. The risk-free rate is 5%. What is the risk neutral probability (p) of an upward movement in the stock price O 7.5% 60% O 71% O.75% D Question 6 7 pts A stock today is currently trading at $50. The risk-free rate is 3.44%. The strike price of an option is $50. Assume the underlying can go up 11.8% and p=0.63. Using a two-period binomial model, the value of the option in one year is closest to 12.50 7.50 4.50 Oo

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