A stock's price is currently $30. Over each of the next two six-month periods it is expected to go up by 7% or down by 6%. The risk-free interest rate is 5% per annum with continuous compounding. What is the risk-neutral probability for an up movement?

	A.	0.6563
	B.	0.8559
	C.	0.6266
	D.	0.7532

A step-up swap is an interest rate swap for which

	A.	the notional principal first increases and then decreases over time.
	B.	the notional principal is a decreasing function of time.
	C.	the notional principal is an increasing function of time.
	D.	the principal can be different on the two sides of the swap.