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5) XYZ Stock is binomially distributed. For each period, it will either go up 10%, or down 20%. The risk free rate is 5%. There

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5) XYZ Stock is binomially distributed. For each period, it will either go up 10%, or down 20%. The risk free rate is 5%. There are no dividends. Currently, (at period 1) the stock sells for $100/share. There is a call option with strike price $90 that expires at period 3. a) What is the risk neutral probability that the stock price will go up

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