Question: post all the steps Let S = $55, K = $50, r = 6% (continuously compounded), d = 2%, s = 40%, T = 0.5,

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Let S = $55, K = $50, r = 6% (continuously compounded), d = 2%, s = 40%, T = 0.5, and n = 5. In this situation, the appropriate values of u and d are 1.13939 and 0.88471, respectively. What is the value of p*, the risk-neutral probability of an upward movement in the stock price at any node of the binomial tree?

	a.	0.3738
	b.	0.4998
	c.	0.5316
	d.	0.4146
	e.	0.4684

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