Question
Consider a futures contract on a non-dividend paying stock with futures price $20 and time to expiration 4 months. Assume that in four months the
Consider a futures contract on a non-dividend paying stock with futures price $20 and time to expiration 4 months. Assume that in four months the stock price will be either $22 or $19. Calculate the risk-neutral probabilities for the future stock prices.
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Entrepreneurship Successfully Launching New Ventures
Authors: Bruce R. Barringer, R. Duane Ireland
5th edition
133797198, 978-0133797190
