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Question 4 1 pts In a two-step model the risk neutral probabilities are 7(0,0) = 0.5, 7(1,1) = 0.45 and 7(1,0) = 0.4. A futures

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Question 4 1 pts In a two-step model the risk neutral probabilities are 7(0,0) = 0.5, 7(1,1) = 0.45 and 7(1,0) = 0.4. A futures contract has shares as the underlying asset where, using CRR notation. S = 10, u = 1.05 and d=0.9. What is the future price for the two-step model? U= O $9.3994 $10 $9.7500 $8.6400 O $10.1588 Question 4 1 pts In a two-step model the risk neutral probabilities are 7(0,0) = 0.5, 7(1,1) = 0.45 and 7(1,0) = 0.4. A futures contract has shares as the underlying asset where, using CRR notation. S = 10, u = 1.05 and d=0.9. What is the future price for the two-step model? U= O $9.3994 $10 $9.7500 $8.6400 O $10.1588

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