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Binomial Option Pricing Model - III A stock is currently priced at $ 1 0 0 . Over each of the next two 6 -

Binomial Option Pricing Model - III
A stock is currently priced at $100. Over each of the next two 6-month periods it is
expected to go up by 10% or down by 10%. The risk-free rate is 8% pa.
What is the risk-neutral probability of the stock price going up?(at least 4 decimal
places)
1 point
What is the risk-neutral probability of the stock price going down? (at least 4
decimal places)
What is the price of a European call option with a strike of $100?(at least 2 decimal
places)
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