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14. A binomial tree with one-month time steps is used to value an index option. The interest rate is 3% per annum and the dividend

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14. A binomial tree with one-month time steps is used to value an index option. The interest rate is 3% per annum and the dividend yield is 1% per annum. The volatility of the index is 16%. What is the probability of an up movement? A. 0.4704 B. 0.5065 C. 0.5592 D. 0.5833

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