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The current price of a non-dividend paying stock is 100. Future stock prices follow the u and d defined in terms of the stocks volatility,

The current price of a non-dividend paying stock is 100. Future stock prices follow the u and d defined in terms of the stocks volatility, which is . At the end of one year the price of the stock will either go up to 115.00 or down to 90.51.The continuously compounded risk-free rate is r. (A) Determine r and .

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