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A stock is currently trading at $57 and we assume a three-period binomial tree model where each period the stock can either increase by 13%,
A stock is currently trading at $57 and we assume a three-period binomial tree model where each period the stock can either increase by 13%, or fall by 15%. Each step in the tree is 3 months. The interest rate is 2.0% per year (continuous compounding). In this model, what is the risk-neutral probability that the stock price will go up twice and drop once over the three periods? [Provide your answer as a percentage rounded to two decimals
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