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 is equal to 0.52, what is the one-month forward price of the stock?
A) $99.48
B) $100.40
C) $100.48
D) $100.52
Correct Answer:
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