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Consider an asset whose future prices are distributed binomialy with: $32.00 Asset Price 55% Volatility . 2.35% Continuously Compounded Risk Free rate . 1.5 Years

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Consider an asset whose future prices are distributed binomialy with: $32.00 Asset Price 55% Volatility . 2.35% Continuously Compounded Risk Free rate . 1.5 Years Total Time Number of Periods Find the Up Factor (u) 1.172 1.047 2.282 1.047 Question 10 Consider an asset whose future prices are distributed binomialy with: $25.00 Asset Price 40% Volatility 1.5% Continuously Compounded Risk Free rate 1.0 Years Total Time Number of Periods Find the Risk Neutral Probability of an Up Move

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