Assume the risk-free continuously compounded interest rate is (4 %) per annum. For an asset with today's

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Assume the risk-free continuously compounded interest rate is \(4 \%\) per annum. For an asset with today's price \(A(0)=\$ 100\), you are told that its expected return is \(10 \%\) per annum and that the asset in one year's time can be \((\$ 100, \$ 120)\) with probabilities \((50 \%, 50 \%)\). What is the expected value of the asset in one year in a risk-neutral setting?

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