18.2. The probability for an up-movement on a binomial tree is (a d)/(u d). Explain...

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18.2. The probability for an up-movement on a binomial tree is (a − d)/(u − d). Explain how the growth factor a is calculated for

(a) a non-dividend-paying stock,

(b) a stock index,

(c) a foreign currency, and

(d) a futures contract.

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