In option pricing, risk neutral probabilities are

a.

the actual, real-world probabilities that makes the price of an asset equal to its future payoffs discounted at its expected rate of return.

b.

are only used in the Black-Schole approach and not in the binomial option pricing approach.

c.

None of the options provided.

d.

the probabilities that make the price of an asset equal to its future payoffs discounted at the risk-free rate of return.

e.

only used in the binomial option pricing approach and not in the Black-Schole approach.