Multiple Choice
The current price of a non-dividend-paying stock is $30.Over the next six months it is expected to rise to $36 or fall to $26.Assume the risk-free rate is zero.What is the risk-neutral probability of that the stock price will be $36?
A) 0.6
B) 0.5
C) 0.4
D) 0.3
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q9: The current price of a non-dividend-paying stock
Q10: Which of the following describes how American
Q11: Which of the following are NOT true<br>A)
Q12: When moving from valuing an option on
Q13: A stock is expected to return 10%
Q15: Which of the following is true for
Q16: Which of the following is NOT true
Q17: The current price of a non-dividend-paying stock
Q18: If the volatility of a non-dividend-paying stock
Q19: The current price of a non-dividend paying