If the Volatility of a Stock Is 20% Per Annum

question 6

Multiple Choice

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 p for a tree with a three-month time step?

• A) 0.50
• B) 0.54
• C) 0.58
• D) 0.62

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Definitions:

Gender

A social and cultural construct that distinguishes roles, behaviors, activities, and attributes considered appropriate for men and women in society.

Sterility

The incapability of a person to reproduce by natural means, often due to factors affecting the reproductive system.

Semen Function

Refers to the role of semen in fertilization, serving as the medium through which sperm are delivered to the female reproductive tract.

Nourish Sperm

The process of providing necessary nutrients for the health and vitality of sperm cells.