Question
Which of the statements below is correct? a. A risk-neutral investor will pay the same price under physical probability as a risk-averse investor would pay
Which of the statements below is correct?
a. | A risk-neutral investor will pay the same price under physical probability as a risk-averse investor would pay under risk-neutral probability. | |
b. | A risk-neutral investor will pay a lower price under risk-neutral probability than a risk-averse investor would pay under physical probability. | |
c. | A risk-neutral investor will pay the same price under risk-neutral probability as a risk-averse investor would pay under physical probability. | |
d. | A risk-neutral investor will pay a higher price under risk-neutral probability than a risk-averse investor would pay under physical probability |
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