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1.4. Suppose the expected return on the stock in your binomial model is below the risk-free rate. Then (A) The risk-neutral probability of the stock

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1.4. Suppose the expected return on the stock in your binomial model is below the risk-free rate. Then (A) The risk-neutral probability of the stock going up is above the actual probability. (B) The risk-neutral probability of the stock going up is below the actual probability. (C) We would need to know u, d, r, and At, before being able to determine the comparison between the risk-neutral and actual probabilities. (D) We need investors to be risk neutral before we can say anything about risk-neutral probabilities at all

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