Consider a one-period binomial model of 6 months.Assume the stock price is $63.00,σ = 0.28,r = 0.05 and the stock's expected return is 14.0%.What is the true probability of the stock going up?
A) 56.6%
B) 52.4%
C) 48.2%
D) 46.4%

Name: Consider a one-period binomial model of 6 months.Assume the stock price is $63.00,σ = 0.28,r = 0.05 and the stock's expected return is 14.0%.What is the true probability of the stock going up? A) 56.6% B) 52.4% C) 48.2% D) 46.4%
Brand: Quizplus
Rating: 4.8 (27 reviews)

Question

Quizplus · Accepted Answer

The Answer is A

Consider a One-Period Binomial Model of 6 Months