Question
In a binomial tree, at the time of option maturity: a) The payoff of the option is riskless b) The value of a portfolio comprised
In a binomial tree, at the time of option maturity:
| a) The payoff of the option is riskless | ||
| b) The value of a portfolio comprised of the stock and a short position in the option is riskless | ||
| Both a) and b) are correct | ||
| Both a) and b) are not correct |
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Handbook Of The Equity Risk Premium
Authors: Rajnish Mehra
1st Edition
0444508996, 978-0444508997
