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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
    If the Binomial Model Is Used with a Specific Dollar
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If the Binomial Model Is Used with a Specific Dollar

Question 32

Question 32

True/False

If the binomial model is used with a specific dollar dividend and the stock price follows the up and down parameters,the tree will explode and end up with far more outcomes than time periods.

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