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

question 17

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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 or down is equal, what is the one-month risk-free interest rate in continuously-compounded and annualized terms?


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Conscientiousness

A characteristic of personality that is marked by being well-organized, reliable, and having a profound sense of responsibility.

Extraversion

A characteristic of a person that involves being extroverted, energetic, and friendly.

Personality Traits

Enduring characteristics that describe an individual's behavior across various situations.

Athletic

Relating to athletes or the physical skills, competencies, and attributes required in sports or physical activities.

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