What is the risk-neutral probability that the stock price

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A stock index currently stands at 300 and has a volatility of 20% per year. the continuously compounded risk-free interest rate is 3% per year and the dividend yield on the index is 8%. a trader used a two-step binomial tree to value a six-month american call option on the index. what is the risk-neutral probability that the stock price moves up in 3 months?

Reference no: EM131991646

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