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Which of the following is true with respect to the binomial model in practice? A. Cannot be relied upon. B. Less accurate than the Black-Scholes
Which of the following is true with respect to the binomial model in practice?
A. Cannot be relied upon.
B. Less accurate than the Black-Scholes pricing model.
C. Provides only a rough estimate of price when only one or two binomial steps are considered.
D. Is a simpler alternative to the Black-Scholes pricing model.
E. None of the above.
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