Question: The binomial option pricing formula in equation 8 - 3 does not include the actual probabilities that a stock will go up or down because

The binomial option pricing formula in equation 8-3 does not include the actual probabilities that a stock will go up or down because
it is assumed the stock will go up.
it is assumed the stock price will remain constant.
only one period is considered.
it is assumed the stock will go down.
the current stock price already incorporates its expected return as a discount rate.

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