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hi please please please help, if correct i give 100 thumbs up but pls only answer if u know the solution Consider the non-dividend paying
hi please please please help, if correct i give 100 thumbs up but pls only answer if u know the solution
Consider the non-dividend paying asset with a current value of 100 kr that is described by the 2-step Binomial model depicted below. Assume that the continuously compounded risk free interest rate is 20% per annum for all maturities. How many percent is the risk-neutral probability that the stock price will be below 120 kr in eight months? Keep at least four decimals in all your calculations. Your answer should be rounded off to nearest integer and contain no decimals. Example if you found that the probability was 0.1345 . 13.45% then you should answer: 13 156.2500 125.0000 100.0000 100.000 80.0000 61 0000 monthsStep by Step Solution
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