Question
A stock price is currently $65, and it is known that at the end of six months it will be either $85 or $45. The
A stock price is currently $65, and it is known that at the end of six months it will be either $85 or $45. The risk-free rate is 12% per annum with continuous compounding. What is the probability (P) of an upward stock movement in a risk-free world?
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk
11th Edition
0324422865, 978-0324422863
