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Suppose a non-dividend paying stock is trading at $175 per share and has a volatility of 45%. What is the up rate (u) equal to
Suppose a non-dividend paying stock is trading at $175 per share and has a volatility of 45%. What is the "up rate" (u) equal to if the strike price is $190 per share, the option has a time to maturity of 3 months and there is 1 binomial period? Assume a risk-free rate of 1%. Round to the nearest 0.0001.
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