Question: In the binomial tree with a given up and down movement of u and d with probabilities p_u and p_d, respectively, we calculated the

In the binomial tree with a given up and down movement of

In the binomial tree with a given up and down movement of u and d with probabilities p_u and p_d, respectively, we calculated the probability that the stock will move up exactly k out of n times as: P(Sn=Soukan-k)= | >-(2) n k=0 k Which of the following is true (and why is this important)? n O n-k

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