Multiple Choice
The values of u and d are which of the following?
A) the return on the stock if it goes up and down,respectively
B) the inverse of the ratio of the up and down probabilities,respectively,and the risk-free rate
C) the normal probabilities of up and down movements,respectively
D) one plus the return on the stock if it goes up and down,respectively
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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