Examiners' commentaries 2011
Examiners' commentaries 2011
Examiners' commentaries 2011
SHOW LESS
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
92 Corporate finance<br />
12<br />
To see this, we can express the current stock price as the probability<br />
weighted average of future prices of the two states:<br />
S = qSH – (1 – q)SL / 1 + rf<br />
q = R – d / u – d
Change language