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In a Binomial Model,if the Call Price in the Market

Question 27

Multiple Choice

In a binomial model,if the call price in the market is higher than the call price given by the model,you should


A) sell the call and sell short the stock
B) buy the call and sell short the stock
C) buy the stock and sell the call
D) buy the call and buy the stock
E) none of the above

Correct Answer:

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