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Please explain in detail I have tried and can not get the right answer thank you for your help! Let S = $55, K =
Please explain in detail I have tried and can not get the right answer thank you for your help! Let S = $55, K = $50, r = 6% (continuously compounded), d = 2%, s = 40%, T = 0.5, and n = 5. In this situation, the appropriate values of u and d are 1.13939 and 0.88471, respectively. What is the value of p*, the risk-neutral probability of an upward movement in the stock price at any node of the binomial tree? | |||||||||||||
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