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The current price of National Pipeline Inc stock is $25. In each of the next two years, this stock price will either go up by
The current price of National Pipeline Inc stock is $25. In each of the next two years, this stock price will either go up by 20% or go down by 20%. The stock pays no dividend. The one-year risk-free interest rate is 6% and will remain constant. 6) The risk-neutral probability that the price will increase is closest to: a) 0.50 b) 0.55 c) 0.60 d) 0.65
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