Question
Risk-neutral valuation for options implies that the binomial option pricing model and the Black-Scholes option pricing model are only applicable to risk-neutral investors. TRUE OR
Risk-neutral valuation for options implies that the binomial option pricing model and the Black-Scholes option pricing model are only applicable to risk-neutral investors.
TRUE OR FALSE?
You must provide a short (one or two sentence) explanation for your answer. No explanation means no marks.
Start your answer with "The statement is TRUE/FALSE." Then go on to answer why.
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
