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Suppose that Elmer Fudd Hunting Supply Co. stock currently trades for $25 and has an annual volatility of = 40%. If the risk-free rate is

Suppose that Elmer Fudd Hunting Supply Co. stock currently trades for $25 and has an annual volatility of = 40%. If the risk-free rate is 5%, what is the risk-neutral probability p of Elmer Fudds stock price moving UP if you model it with a binomial tree? Assume that t = 6 months.

Group of answer choices

0.7536

0.4739

1.0253

1.3269

0.5000

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