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Which of the following statements is TRUE? I. When pricing a put with the binomial model, the up and down probabilities are reversed. II. When
Which of the following statements is TRUE?
I. When pricing a put with the binomial model, the up and down probabilities are reversed.
II. When pricing an American put with the binomial model, you must check for early exercise at each time point and stock price except the current one.
A. I
B. II
C. Both I and II
D. Both are false
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