In a One-Period Binomial Model,assume That the Current Stock Price

question 15

Multiple Choice

In a one-period binomial model,assume that the current stock price is $100,and that it will rise to $110 or fall to $90 after one month.If the risk-neutral probability of the stock going up is equal to 0.52,what is the one-month forward price of the stock?

• A)$99.48
• B)$100.40
• C)$100.48
• D)$100.52

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