Question: Given: 1-step Binomial Tree: S(0) = 30, u = 1.25, d = 1/u, r= 996, At = 4 months. The probability of a DOWN movement

Given: 1-step Binomial Tree: S(0) = 30, u = 1.25, d = 1/u, r= 996, At = 4 months. The probability of a

Given: 1-step Binomial Tree: S(0) = 30, u = 1.25, d = 1/u, r= 996, At = 4 months. The probability of a DOWN movement in a risk neutral world is approximately: O A 0.4879 O B 0.5 0.5121 O D 0.5259

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