Assume the Current Value of the Underlying Asset Is $20

question 50

Multiple Choice

Assume the current value of the underlying asset is $20 and the value of the underlying asset tomorrow can either be $15 or $25.What is the risk-neutral probability of generating a 2% return on the asset?

• A)0.54
• B)−1.46
• C)0.135
• D)0.9

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Definitions:

Occipital Lobes

The area of the brain situated at the rear of the skull, tasked with interpreting visual data.

EEG

Electroencephalography, a monitoring method to record electrical activity of the brain, used in the diagnosis of brain disorders.

Synapse

The junction between two neurons where information is transmitted from one neuron to another.

Agonist

A chemical or drug that binds to receptors in the brain and activates them, often mimicking the effects of naturally occurring substances.