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In a one-period binomial model, assume that the current stock price is $100, and that it will rise to $105 or fall to $95 after
In a one-period binomial model, assume that the current stock price is $100, and that it will rise to $105 or fall to $95 after one month, such that u = 1.05 and d = 0.95. If the risk-neutral probability of the stock going up or down is 0.525, what is the one-month risk-free interest rate in continuously-compounded and annualized terms
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