Question
The volatility of a stock is 20% and the risk-free rate is 5%, both per annum and with continuous compounding. Which of the following is
The volatility of a stock is 20% and the risk-free rate is 5%, both per annum and with continuous compounding. Which of the following is closest to the Cox, Ross, and Rubinstein estimate of risk-neutral probability p for a binomial tree with a one-week time step?
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International Financial Reporting Standards An Introduction
Authors: Belverd Needles, Marian Powers
2nd edition
053847680X, 978-1111793234, 1111793239, 978-0538476805
