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    Fundamentals of Corporate Finance Study Set 12
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    Exam 13: Risk and the Pricing of Options
  5. Question
    The Binomial Option Pricing Model Calculates the Option Price by Creating
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The Binomial Option Pricing Model Calculates the Option Price by Creating

Question 79

Question 79

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The binomial option pricing model calculates the option price by creating a replicating portfolio out of a risk-free bond and the underlying stock.

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