which statement is false? A$.$

The binomial tree contains all the information we currently$$ know: the value of the$$ stock, bond, and call options in each state in one$$ period, as well as the price of the stock and bond today.

B$.$

The idea that you can replicate the option payoff by dynamically trading in a portfolio of the underlying stock and a riskminusfree bond was one of the most important contributions of the original BlackminusScholes paper.$$ Today, this kind of replication strategy is called a dynamic trading strategy.

C$.$

By using the Law of One$$ Price, we are able to solve for the price of the option as long as we know the probabilities of the states in the binomial tree.

D$.$

A replicating portfolio is a portfolio of other securities that has exactly the same value in one period as the option.