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Which of the following is wrong? Question 2 8 Select one: A . We define a state in which the stock price goes up as
Which of the following is wrong?
Question Select one:
A
We define a state in which the stock price goes up as an up state, and a state in which the stock price goes down as a down state.
B
The techniques of the binomial pricing model for options are specific to European call and put options.
C
When using the binomial pricing model, the law of one price requires that the option price today must equal the market price of the mimicking portfolio.
D
Empty
E
We can draw together the payments for the binomial pricing model for options on a binomial tree at any given moment, a twobranch timeline that represents the possible events that could occur at those moments.
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