=+5. Consider the price model from Problem 3 above. Assume that the actual probability P for the

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=+5. Consider the price model from Problem 3 above. Assume that the ‘actual’

probability P for the price model in this example is such that each price movement at each step happens with probability 1/2. Compute the Radon-Nikodym derivative Z of the risk-neutral measure Q found in Problem 3(i) with respect to the ‘ actual’ measure P.

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