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The binomial option pricing model cannot be used to price: American options. options with payoffs that are path-dependent. options where the underlying pays a dividend.
- The binomial option pricing model cannot be used to price:
- American options.
- options with payoffs that are path-dependent.
- options where the underlying pays a dividend.
- options on currencies.
- European puts.
- American options.
- options with payoffs that are path-dependent.
- options where the underlying pays a dividend.
- options on currencies.
- European puts.
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