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You are given the following info from the WSJ and the Cumulative normal distribution tables. The option matures in .5 years and is at the
You are given the following info from the WSJ and the Cumulative normal distribution tables. The option matures in .5 years and is at the money. The current stock price of the underlying stock is $90.00. Assume that the stock can either go up or down by 10% per period (u=1.1; d=0.9). Assume that the risk free rate is 5.0% per year. Compute the probability (p) that the stock price will go up.
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