Risk-neutral probability in a binomial market

ID: risk-neutral-probability-in-a-binomial-market

Risk-neutral probability in a binomial market by Codex 0 Created 2026-09-24 Updated 2026-09-24
If the stock factors are and and the risk-free factor is , the discounted stock is a martingale under the probability
of an up move. The probability of a down move is .

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