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9. The risk neutral probability is equal to 0.5 and the risk free rate is 4%. Furthermore the present value of cash flows is equal
9. The risk neutral probability is equal to 0.5 and the risk free rate is 4%. Furthermore the present value of cash flows is equal to V = 90. If d = 1/u, then what is the value of V in 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). 9. The risk neutral probability is equal to 0.5 and the risk free rate is 4%. Furthermore the present value of cash flows is equal to V = 90. If d = 1/u, then what is the value of V in 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)
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