For questions 5 to 7, consider the following information: The current s...
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For questions 5 to 7, consider the following information:
The current stock price of . The firm will pay a dividend per share equal to 10% of its stock price 9 months from now. Consider a risk-free rate APR (Annual Percentage Rate) of 13,8% quarterly compounded.
Find the risk-neutral probability of this firm’s stock moving up in the next quarter.
(Insert your answer as a
percentage. For example, if your answer is 0.673, you should insert 67.30)
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