Question
Which of the following describes how American options can be valued using a binomial tree? Check whether early exercise is optimal at the penultimate nodes
Which of the following describes how American options can be valued using a binomial tree?
Check whether early exercise is optimal at the penultimate nodes and the final nodes.
Check whether early exercise is optimal at the final nodes.
Check whether early exercise is optimal at all nodes where the option is in-the-money.
None of the given answers.
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Regulation And The Credit Rating Agencies Restraining Ancillary Services
Authors: Daniel Cash
1st Edition
036758803X, 978-0367588038
