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Compute the risk-neutral probability that the stock will be down 1 year from now. Round final answer to two decimals. Stock price (S) $ 50.00
Compute the risk-neutral probability that the stock will be down 1 year from now. Round final answer to two decimals.
| Stock price (S) | $ 50.00 |
| Stock price up (SU) | $ 70.00 |
| Stock price down (SD) | $ 30.00 |
| Risk-free rate (rf) | 5% |
| Time to expiration in years | 1.00 |
| pU | |
| pD |
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Working Capital Management And Finance A HandBook For Bankers And Finance Managers
Authors: R.K.Gupta, Himanshu Gupta
4th Edition
1645875547, 9781645875543
