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If the volatility of a non-dividend-paying stock is 20% per annum and the risk-free rate is 5% per annum on a continuous
Posted: Tue Apr 26, 2022 11:17 am
by answerhappygod
- If The Volatility Of A Non Dividend Paying Stock Is 20 Per Annum And The Risk Free Rate Is 5 Per Annum On A Continuous 1 (33.79 KiB) Viewed 47 times
If the volatility of a non-dividend-paying stock is 20% per annum and the risk-free rate is 5% per annum on a continuously compounded basis, which of the following is closest to the risk neutral probability of the stock price going up for a tree with a three- month time step? O a. 0.58 Ob. 0.54 OC. 0.50