In the Cox-Ross-Rubinstein (CRR) binomial model, the volatility is given as $\sigma = 0.2$ . The risk-free rate of interest is 2%. What is the risk-neutral probability of an up move on a binomial tree with a time step of one month?
A) 0.45
B) 0.50
C) 0.55
D) 0.60

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The Answer of In the Cox-Ross-Rubinstein (CRR) binomial model, the volatility is given as $\sigma = 0.2$ . The risk-free rate of interest is 2%. What is the risk-neutral probability of an up move on a binomial tree with a time step of one month?
A) 0.45
B) 0.50
C) 0.55
D) 0.60

In the Cox-Ross-Rubinstein (CRR) Binomial Model, the Volatility Is Given σ=0.2\sigma = 0.2σ=0.2

In the Cox-Ross-Rubinstein (CRR) Binomial Model, the Volatility Is Given $\sigma = 0.2$