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Pricing a Put with the Binomial Model Is the Same

Question 30

Multiple Choice

Pricing a put with the binomial model is the same procedure as pricing with a call,except that the


A) underlying stock must not pay dividends
B) binomial model cannot account for expiration payoffs
C) value of the underlying must be discounted back to the current time period
D) expiration payoffs reflect the fact that the option is the right to sell the underlying stock
E) none of the above

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