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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
    The Up and Down Factors in the Binomial Model Are
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The Up and Down Factors in the Binomial Model Are

Question 58

Question 58

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The up and down factors in the binomial model are analogous to the volatility.

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