PJAYAKUMAR
Member
Hello - I am trying to calculate Risk neutral probability of three step process
P2.T5. Market Risk Measurement & Management
In page 27 study download, three step binomial tree
I do noticed risk neutral probablities
q= 0.6489
May I kindly request to paste the step by step calculation?
I used this calculation but not able to match "q value"
{946.51(1+5.15%/2) - 975.61} / (970.87-975.61) = 0.9973
Please help me out. Thank you
P2.T5. Market Risk Measurement & Management
In page 27 study download, three step binomial tree
I do noticed risk neutral probablities
q= 0.6489
May I kindly request to paste the step by step calculation?
I used this calculation but not able to match "q value"
{946.51(1+5.15%/2) - 975.61} / (970.87-975.61) = 0.9973
Please help me out. Thank you
