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Quant Interview Practice Questions

专题
Options & Greeks
难度
L2
来源
MyntBit

题目详情

A stock is currently trading at 100 dollars. Over the next period, it is expected to either increase to 110 dollars or decrease to 90 dollars. The risk-free rate is 5% per period. Assuming no dividends, calculate the risk-neutral probability of the stock price increasing.