8. Let the present value of cash flows of a company be denoted by Vo = 100. This value can move up V = 110 the next period. The risk free rate is equal to 5%. What is the risk neutral probability? Please use a period to indicate the decimal place (e.g. 0.67 instead of 0,67). 0.5 Incorrect u = V No, d=1/u. The risk neutral probability is calculated as p = ((1+r)-d)/(u-d) 9. The risk neutral probability is equal to 0.6 and the risk free rate is 5%. Furthermore the present value of cash flows is equal to V = 100. If d = 1/u, then what is the value of Vin the downstate in the next period? Please round your answer to one decimal place and use a period to indicate the decimal place (e.g. 100.7 instead of 100,7). 133.3 ! Incorrect p = ((1+r)-d)/(u-d) = 0.6. Solve for u and use d = 1/u for V*u and V*d