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The diagram below depicts a 4-step Binomial tree to model share price. In a risk- neutral world, the probability (p*) of share price moving up
The diagram below depicts a 4-step Binomial tree to model share price. In a risk- neutral world, the probability (p*) of share price moving up on any given branch of the tree is 0.4778. 81.55 63.51 49.46 49.46 38.52 38.52 30 30 30 23.36 23.36 18.20 18.20 11.04 There are several paths that lead to a final share price of $30. What is the probability that share price starts at $30 and finishes at $30? Enter your answer to 4 decimal places. For example, if your answers is 12.34%, enter 0.1234
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