Dictionary > Finance > R > Risk Neutral Probability

# Finance Dictionary - R Terms

# Risk Neutral Probability

In the binomial model, the probability of an up move in the asset price such that the expected return on the asset is the risk-free rate.

Dictionary > Finance > R > Risk Neutral Probability

In the binomial model, the probability of an up move in the asset price such that the expected return on the asset is the risk-free rate.