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Which of the Following Are NOT True

Question 11

Multiple Choice

Which of the following are NOT true


A) Risk-neutral valuation and no-arbitrage arguments give the same option prices
B) Risk-neutral valuation involves assuming that the expected return is the risk-free rate and then discounting expected payoffs at the risk-free rate
C) A hedge set up to value an option does not need to be changed
D) All of the above

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