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Find the risk-neutral probability of gold price

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Reference no: EM133056070

You are valuing a gold mine as a real option using the binomial model with one step being 3 months long. You estimate volatility of gold price to be 15% per year and risk-free interest rate to be 4% per year. Find the risk-neutral probability of gold price going up.

a. 55%

b. 50%

c. 45%

d. 60%

Which of the following components of the overall CEO compensation package provides risk-taking incentives in addition to aligning CEO interest with that of shareholders?

a. Equity

b. Bonus

c. Stock options

d. Salary

Reference no: EM133056070

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