An investor anticipates a 25% movement (up or down) in the underlying asset's price over the next year. Given a risk-free rate of 5%, the risk-neutral probability of a decline in the underlying price is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
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An investor anticipates a 25% movement (up or down) in the underlying asset's price over the next year. Given a risk-free rate of 5%, the risk-neutral probability of a decline in the underlying price is closest to:
