Question
The current price of a non-dividend-paying biotech stock is $140 with a volatility of 25%. The risk-free rate is 4%. For a three-month time step:
The current price of a non-dividend-paying biotech stock is $140 with a volatility of 25%. The risk-free rate is 4%. For a three-month time step: What is the probability of an up movement in a risk-neutral world? What is the probability of a down movement in a risk-neutral world?
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The Total Inventors Manual
Authors: Sean Michael Ragan
1st Edition
1681881586, 978-1681881584
