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A derivative has 8 months until it expires. The stock on which the derivative is written has volatility of 0.40 per annum. You intend to
A derivative has 8 months until it expires. The stock on which the derivative is written has volatility of 0.40 per annum. You intend to value this derivative using a 4- step Binomial tree Calculate the proportional up movement necessary to draw the tree. Give you answer to 4 decimal places
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