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16.4 In the version of the binomial model in which the factors by which the stock price goes up or down, u and d, are

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16.4 In the version of the binomial model in which the factors by which the stock price goes up or down, u and d, are related by d = 1/u, if the volatility is .2 and the time step is 2 months, then the factor by which the underlying stock could go up is u = 1.03 0.92 O 0.97 1.22 1.09

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