In a Cox-Ross-Rubinstein Binomial Tree, the Relationship Between the Proportional

Multiple Choice

In a Cox-Ross-Rubinstein binomial tree, the relationship between the proportional down-movement, d, and the proportional up-movement, u, is: choose one)

A) d = u − 1
B) d = 1 / u
C) d = 2 − u
D) None of the above