Suppose you bought a stock at $100. You have placed a limit order to sell the stock
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Question:
traders view a bear market scenario occurs with the probability of an up move of p = 0.45 and that of a down move of q = 0.55.
Now suppose that bull market (and hence the bear market) probabilities change to p= 0.60 and q = 0.4.
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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