For a Binomial Distribution,the Probability of a Success Stays the Same

question 65

True/False

For a binomial distribution,the probability of a success stays the same for each trial,but the probability of a failure varies from trial to trial.

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Definitions:

Narrow Range

Refers to a situation where the difference between the high and low prices, values, or figures within a given period is relatively small.

Stock Price Declines

A reduction in the market price of shares representing ownership in a company.

Long Call

An options trading strategy that involves buying call options with the anticipation that the underlying stock will rise in value.

Short Put

A type of options strategy where the investor sells put options, betting that the price of the underlying asset will rise above the strike price.