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Under risk neutral pricing concept, what are the variables, qs,ds in relationship with single period binomial pricing? Risk Neutral: P=R1E(d)=R1sqsds a) ds={Cu,Cd} and qs={q,1q} b)
Under risk neutral pricing concept, what are the variables, qs,ds in relationship with single period binomial pricing? Risk Neutral: P=R1E(d)=R1sqsds a) ds={Cu,Cd} and qs={q,1q} b) ds={Cu,Cd,C} and qs={q,1q} c) ds={Cu,C} and qs={q,1q} d) ds={Cd,C} and qs={q,1q}
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