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You are given the following binomial tree of stock prices. In addition. the rate of interest per period is constant at 2%. Find the risk?neutral
You are given the following binomial tree of stock prices. In addition. the rate of interest per period is constant at 2%. Find the risk?neutral probabilities of the stock movements from each node on the tree. Are these probabilities the same? If not, explain whether the tree is a valid one
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