In the one-period binomial model, the risk-neutral probability of the stock going up is:

I. Equal to the real probability that the stock should go up.

II. The probability that investors living in a risk-neutral world would use to assess the likelihood of the stock going up.

III. A mathematical artifact that allows us to compute the correct price of a derivative.

Group of answer choices

a Only I is correct.

b Only II is correct.

c Only III is correct.

d Only I and II are correct.

e Only II and III are correct.