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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 Binomial Option Pricing Formula Is Based on the Weighted
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The Binomial Option Pricing Formula Is Based on the Weighted

Question 18

Question 18

True/False

The binomial option pricing formula is based on the weighted average of the next two possible values,discounted back to the present.

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