In a Two-Period Binomial World,a Mispriced Call Will Lead to an Arbitrage

Multiple Choice

In a two-period binomial world,a mispriced call will lead to an arbitrage profit if

A) the proper hedge ratio is maintained over the two periods
B) the hedge portfolio is terminated after one period
C) the option goes from over- to underpriced or vice versa
D) the option remains mispriced over both periods
E) none of the above