Use the risk-neutral probabilities in Example 11.7 to find the present value of the following random cash flow: At time 2 we receive $20 in the state uu, $10 in the states ud and du, and nothing in the state dd. No payments are due at other times.
Use the risk-neutral probabilities in Example 11.7 to find the present value of the following random cash flow: At time 2 we receive $20 in the state uu, $10 in the states ud and du, and nothing in the state dd. No payments are due at other times.