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Which of the Following Is True for U in a Cox-Ross-Rubinstein

Question 11

Multiple Choice

Which of the following is true for u in a Cox-Ross-Rubinstein binomial tree?


A) It depends on the interest rate and the volatility
B) It depends on the volatility but not the interest rate
C) It depends on the interest rate but not the volatility
D) It depends on neither the interest rate nor the volatility

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