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MMLU-Pro / 697 / For a one-period binomial model for the price of a stock, you are given: (i) The…

Problem

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question

For a one-period binomial model for the price of a stock, you are given: (i) The period is one year. (ii) The stock pays no dividends. (iii) u =1.433, where u is one plus the rate of capital gain on the stock if the price goes up.  (iv) d = 0.756 , where d is one plus the rate of capital loss on the stock if the price goes down. (v) The continuously compounded annual expected return on the stock is 10%. What is the true probability of the stock price going up.

category

business

options

  1. 0.58
  2. 0.75
  3. 0.55
  4. 0.30
  5. 0.40
  6. 0.60
  7. 0.65
  8. 0.70
  9. 0.52
  10. 0.45

src

theoremQA-Finance

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Source and history

upstream_id / Original problem ID
697
task_id
c0d8648a-7763-52f2-915a-e2da8b8cfdab
task_key
default--test--697
task_revision_id
1
config / split
default / test

Official source

initial import