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A derivative has 6 months until it expires. The stock on which the derivative is written has volatility of 0.25 per annum. You intend to

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A derivative has 6 months until it expires. The stock on which the derivative is written has volatility of 0.25 per annum. You intend to value this derivative using a 3-step Binomial tree. Calculate the proportional up movement u necessary to draw the tree. Give you answer to 4 decimal places

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