13. Suppose the annualized volatility of a stock is The mean return is The risk-free r...

13. Suppose the annualized volatility of a stock is The mean return is The risk-free rate is constant for all maturities at 2%. Letting the time interval h increase in monthly increments (1/12 of a year), how does the risk-neutral probability of an up move in the stock price change when using the CRR model? Why do we see this pattern?