Q631
In binomial approach of option pricing model, fourth step is to create
A.
equalize domain of payoff
B.
equalize ending price
C.
riskless investment
AnswerD.
high risky investment
Answer: Option C
Solution
Answer: Option C
Solution:
In binomial approach of option pricing model, fourth step is to create riskless investment. An investment with a certain rate of return and no chance of default.