Multiple Choice
Which of the following statements about a binomial interest rate derivative pricing model is INCORRECT?
A) The model can be used to price European caplets and floorlets.
B) The model can be used to price a forward rate agreement.
C) The model can be used to price a Eurodollar futures contract.
D) The model can be used to price a swaption.
E) The model can be used to price an equity option.
Correct Answer:
Verified
Correct Answer:
Verified
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