Question: For a stock price following a binomial process. In each step u = 1 4 % and d = - 1 4 % , the
For a stock price following a binomial process. In each step u and d the riskfree rate is given by rfper step in the tree The initial stock price is What is the riskneutral probability that the stock will have up movements and down movements is provide your answer as a percentage and round to two decimals: eg for enter
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