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

question 4

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 an investment of a dollar at the risk-free rate returns $1.001668 after one month,what is the price of an Arrow security in the state where the stock price moves up?

• A)0.4974
• B)0.4983
• C)0.5000
• D)0.5075

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Definitions:

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Rapid increases in hormone levels, which can affect mood, growth, metabolism, and sexual function among other bodily processes.

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