Use the Information for the Question(s)below

question 11

Multiple Choice

Use the information for the question(s) below.
The current price of KD Industries stock is $20.In the next year the stock price will either go up by 20% or go down by 20%.KD pays no dividends.The one-year risk-free rate is 5% and will remain constant.
-The risk-neutral probability of a down state for KD Industries is closest to:

• A)37.5%.
• B)62.5%.
• C)40.0%.
• D)60.0%.

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Definitions:

Ecological Niches

Specific positions or roles played by organisms within their environment, considering how they obtain their energy and nutrients, and interact with other organisms.

Clades

Clades are groups of organisms that are classified together based on sharing a common ancestor, thereby forming a branch on the tree of life.

Fossil Record

The collection of physical remains of organisms from the past, preserved in Earth's crust, which provides evidence of the history of life.

Microorganisms

Tiny living organisms, such as bacteria, viruses, and fungi, that can be seen only with a microscope.