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The present value of cashflows is equal to V = 90. This value can move up the next period with u = 1.1 to V
The present value of cashflows is equal to V = 90. This value can move up the next period with u = 1.1 to V = 99. The up factor is u = e^ and the down factor is d = 1/u. Calculate the volatility for one period, expressed in decimals rounded to two digits.
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