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In a binomial tree created to value an option on a stock, what is the expected return on the option? A. Zero B. The return
In a binomial tree created to value an option on a stock, what is the expected return on the option?
A. | Zero | |
B. | The return required by the market | |
C. | The risk-free rate | |
D. | It is impossible to know without more information |
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