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A financial services product is offered to you. It pays you $100,000 one year from today if the S&P 500 goes up over the year
A financial services product is offered to you. It pays you $100,000 one year from today if the S&P 500 goes up over the year and $50,000 is the S&P 500 goes down over the year. You believe the probability of the market going up and the market going down are 50% and 50%, respectively. The risk free rate is 0% and the MRP is 5%, what is the fair value of this investment? O $75,000, exactly We need more information to choose between the answers. More than $75,000 O Less than $75,000
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