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1. QUESTION 1 in a one-period binomial model, assume that the current stock price is $100, and that it will rise to $110 or fall

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1. QUESTION 1 in a one-period binomial model, assume that the current stock price is $100, and that it will rise to $110 or fall to $90 after one month. If the risk-neutral probability of the stock going up or down is equal, what is the one-month risk-free interest rate in continuously-compounded and annualized terms? F t!" (" 0 % 1 % 2 % 3 %

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