Multiple Choice
The price of oil is currently at $24 but you expect it to either increase by 18 percent or decrease by 7 percent over the next 6 months.The 6-month risk-free rate of interest is 1.98 percent.What is the probability that the price will increase?
A) 32.47 percent
B) 36.03 percent
C) 38.06 percent
D) 35.92 percent
E) 37.94 percent
Correct Answer:
Verified
Correct Answer:
Verified
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