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3) We have seen that the risk-neutral probability of a move up on the tree is given by p = when the underlying S does
3) We have seen that the risk-neutral probability of a move up on the tree is given by p = when the underlying S does not pay dividends. In case er-v41-d it pays a dividend yield q that becomes p= What should p be in te case in which we are dealing with currency options? u-d
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Practical Financial Management
Authors: William R. Lasher
4th Edition
0324260768, 9780324260762
