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1.) You have determined that if Generics Manufacturer A prevails against the government in court, its shares are worth $160. If it loses, it must

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1.) You have determined that if Generics Manufacturer A prevails against the government in court, its shares are worth $160. If it loses, it must pay a large settlement, meaning shares are only worth $34. The decision is expected later today and shares currently trade at $55. What probability is the market suggesting GMA has of winning? (Adapted from a Citi S&T Interview question)

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