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    Derivatives and Risk Management Study Set 2
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    Exam 4: Option Pricing Models: the Binomial Model
  5. Question
    In a Multiperiod Binomial Model,an Arbitrage Profit Cannot Be Earned
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In a Multiperiod Binomial Model,an Arbitrage Profit Cannot Be Earned

Question 48

Question 48

True/False

In a multiperiod binomial model,an arbitrage profit cannot be earned until the option expires.

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