ed 50 Consider a binomial tree setting in which in each period the price goes up by u 1.10 (with probability P 0.60) or down by d = 0.90 (with probability 1 p=0.4). The risk-free interest rate per time step is zero, so a dollar invested at the beginning of the period returns a dollar at the end of the period. In this setting, the risk-neutral probability of a two-period call with strike K = 95 finishing in the money is ed 50 Consider a binomial tree setting in which in each period the price goes up by u 1.10 (with probability P 0.60) or down by d = 0.90 (with probability 1 p=0.4). The risk-free interest rate per time step is zero, so a dollar invested at the beginning of the period returns a dollar at the end of the period. In this setting, the risk-neutral probability of a two-period call with strike K = 95 finishing in the money is