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If the Volatility of a Stock Is 20% Per Annum

question 1

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If the volatility of a stock is 20% per annum and a risk-free rate is 5% per annum, which of the following is closest to the Cox, Ross, Rubinstein parameter u for a tree with a three-month time step?


Definitions:

Armature Shaft

The rotating shaft part of an electric motor or generator, onto which the armature winding is coiled.

Output Speed

The speed at which a shaft or device is rotating or operating, usually measured in revolutions per minute (RPM) or a similar unit.

39MT Starter Motor

The 39MT Starter Motor is a specific model of starter motor designed for heavy-duty vehicles, known for its reliability and performance in starting engines.

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