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The following two securities are currently trading in the economy. Suppose that annualized continuously compounded interest rate is r, and time to maturity is T.

The following two securities are currently trading in the economy. Suppose that annualized continuously compounded interest rate is r, and time to maturity is T. B = 0.90 0.4595 0.5172 2 0 Given these prices, what is the risk-neutral probability of reaching the "up" state, q? 0.8875 2 0.5643 B = 0.84 0 4
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The following two securities are currently trading in the economy. Suppose that annualized continuously compounded interest rate is r, and time to maturity is T. Given these prices, what is the risk-neutral probability of reaching the "up" state, q ? 0.4595 0.5172 0.8875 0.5643

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