Sketch a diagram of the two period stock price model

Reference no: EM131793654

Question: Suppose that, in each period, the cost of a security either goes up by a factor of u = 2 or down by a factor d = 1/2. Assume the initial price of the security is $100 and that the interest rate r is 0.

Sketch a diagram of this two period stock price model.

Reference no: EM131793654

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