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  3. Study Set
    Derivatives and Risk Management Study Set 2
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    Exam 4: Option Pricing Models: the Binomial Model
  5. Question
    If the Binomial Model Describes the Real World,the Combined Actions
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If the Binomial Model Describes the Real World,the Combined Actions

Question 5

Question 5

True/False

If the binomial model describes the real world,the combined actions of all investors will cause the market price to converge to the binomial price.

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