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We want to use the binomial model to price options where the underlying stock is $30. Over the next six months, the stock price is

We want to use the binomial model to price options where the underlying stock is $30. Over the next six months, the stock price is expected to rise to $36 or fall to $26. Assume the risk-free rate is zero. What is the risk-neutral probability that we should use?

		A. 0.5
		B. 0.3
		C. 0.55
		D. 0.6
		E. 0.4

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