With the Binominal Option Pricing Model,it Is Reasonable to Assume

Multiple Choice

With the binominal option pricing model,it is reasonable to assume:

A) there is a varying rate of price change from one time interval to the next time interval.
B) any new information impacting prices is similar from one interval to another interval.
C) the discount rate increases with each time interval.
D) the call price will only be usable if the time interval is extremely small.
E) that each project is limited to two outcomes over its life.