Why don't the probabilities of going up and down affect the options value?

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Introduction to Corporate Finance

ISBN: 978-1119171287

4th edition

Authors: Laurence Booth, Sean Cleary, Ian Rakita

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Question Posted: Nov 01, 2017 06:35 AM

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Why don't the probabilities of going up and down affect the options value?

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This is because with only two possibi...View the full answer

Introduction to Corporate Finance

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