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Given a Binomial model of option pricing: The underlying stock price is S_0 = $100 today, its up-factor and down-factor after one period are u
Given a Binomial model of option pricing: The underlying stock price is S_0 = $100 today, its up-factor and down-factor after one period are u = 4 and d = 0.5, and the probabilities of the stock prices up and down movements in the real world are pu = 1/7 and pd = 6/7 . Let S_N be the price of this stock at time T = N periods. Find the probability distribution function of S_N . Please justify your
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Options Trading 12 Books In 1 Elevate Your Profits Erase Risks The Definitive Guide From Rookie To Top 1 Trader
Authors: Warren Ray Benjamin
1st Edition
979-8860106413
