A stock price is currently 100 over each of the next two
A stock price is currently $100. Over each of the next two six-month periods it is expected to go up by 13% or down by 9%. The risk-free interest rate is 2%. What is the risk-neutral probability that the stock price will increase each period?
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a stock price is currently 100 over each of the next two six-month periods it is expected to go up by 13 or down by 9
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