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Pricing a put with the binomial model is the same procedure as pricing with a call, except that the: a. expiration payoffs reflect the fact
Pricing a put with the binomial model is the same procedure as pricing with a call, except that the:
a. | expiration payoffs reflect the fact that the option is the right to sell the underlying stock |
b. | only European options can be priced using the binomial model |
c. | value of the underlying must be discounted back to the current time period |
d. | binomial model cannot account for expiration payoffs |
e. | underlying stock must not pay dividends |
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