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financial mathematics Risk-Neutral world. Consider a two-step binomial tree with u =1.2 and d=0.9. Initial stock price is 40$. The interest rate is 5% per

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financial mathematics

Risk-Neutral world. Consider a two-step binomial tree with u =1.2 and d=0.9. Initial stock price is 40$. The interest rate is 5% per annum, compound continuously. Work out the probability distribution of stock price in six-months in risk neutral world

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