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The following two securities are currently trading in the economy with two potential states of the future. Suppose that annualized risk-free rate is r, and

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The following two securities are currently trading in the economy with two potential states of the future. Suppose that annualized risk-free rate is r, and time to maturity is one-year. 2 0 B1 = 0.90 = B2 = 0.84 0 2 What is the risk-neutral probability of realizing the "up" state

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