In a one period binomial model, the value of an options is best described as the present value of a) prob . weighted average of two possible outcomes b) a prob. weighted average of a chosen number of possible outcomes. c) one of ...Read more
In a one period binomial model, the value of an options is best described as the present value of
a) prob . weighted average of two possible outcomes
b) a prob. weighted average of a chosen number of possible outcomes.
c) one of two possible outcomes based on a chosen size of increase or decrease.
what is question asking about?
Read less