Question
A stock price is currently $70, and it is known that at the end of six months it is expected to go up by 14%
A stock price is currently $70, and it is known that at the end of six months it is expected to go up by 14% or down by 8%. 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?
A stock price is currently $70, and it is known that at the end of six months it is expected to go up by 14% or down by 8%. 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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Finance For Non Financial Managers
Authors: Gene Siciliano
1st Edition
0071413774, 978-0071413770
