Does the binominal model or Black-Scholes model assume that investors are risk neutral?

Question:

Does the binominal model or Black-Scholes model assume that investors are risk neutral?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Corporate Finance

ISBN: 9780132992473

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo

Question Posted: