Multiple Choice
Determine the value of d for a four period binomial model when the option's life is one-fourth of a year and the volatility is 0.64.Use the model for u and d that does not require the risk-free rate.
A) 0.85
B) 1.17
C) 2.56
D) 0.90
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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