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4. Assume that a nondividend paying security has a current price of $50, instantaneous expected return of 8%, and volatility of 15%. Estimate the probability, as a fraction (not percentage) to two decimal places, that 3 months from now, the price of the real-world, continuous-time price of the security is greater than $50. What fractional probability to two decimal places does a 100-period real-world CRR tree predict? How about a 1,000- period real-world CRR tree? Find a value of n for which an n-period real-world CRR tree gives the same fractional probability to two, three, and four decimal places as that obtained from the continuous-time security price model. Use a software for this problem. 4. Assume that a nondividend paying security has a current price of $50, instantaneous expected return of 8%, and volatility of 15%. Estimate the probability, as a fraction (not percentage) to two decimal places, that 3 months from now, the price of the real-world, continuous-time price of the security is greater than $50. What fractional probability to two decimal places does a 100-period real-world CRR tree predict? How about a 1,000- period real-world CRR tree? Find a value of n for which an n-period real-world CRR tree gives the same fractional probability to two, three, and four decimal places as that obtained from the continuous-time security price model. Use a software for this

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