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(1 point) Consider a stock with an initial price of $140 that has a 90% chance it will be 15% higher after each period or
(1 point) Consider a stock with an initial price of $140 that has a 90% chance it will be 15% higher after each period or 25% lower otherwise. (a) Listing stock values in decreasing order, complete the following portion of the 4-period binomial tree model for the stock. [Note: Do not calculate the values at each level. Use appropriate formulae.] 54k, Stock Value Stock Valuek at t = 0 P(S4 = $4,k) as a percent to 2 decimals at t = 4 140 NOTE: Only input numeric values in the chart. Do not input s or%. (b) Find the following probability. P(S4 > So) = % to 2 decimal places
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