Risk Neutrality and Implied Branch Probabilities (cont'd)
{"Image DocumentName": "Risk Neutrality and Implied Branch Probabilities (cont\u2019d)", "Image ImageDescription": "Define the following: U = 1 + % increase if the stock goes up. D = 1 \u2013 % decrease if the stock goes down. Pup = probability that the stock goes up. Pdown = probability that the stock goes down. ert = continuously compounded interest rate factor.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}