Multiple Choice
A binomial tree setting has an up-move of (with probability ) and a down move of (with probability ) ,with .The risk-free interest rate per time step is zero,so a dollar invested at the beginning of the period returns at the end of the period.The risk-neutral probability of an up-move in this setting
A) Is
)
B) Is
)
C) Is equal to
)
D) Is equal to
)
Correct Answer:

Verified
Correct Answer:
Verified
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