The Binomial Option Pricing Model Approximates the Price of an Option

question 8

True/False

The binomial option pricing model approximates the price of an option obtained using the Black-Scholes option pricing model as the number of subintervals increases.

---

Definitions:

Scopes Trial

A landmark American legal case in 1925 that debated the legality of teaching evolution in public schools.

Freedom

The condition or right of being able to act, speak, or think as one wants without hindrance or restraint.

American Corporations

Large business entities operating within the United States, which are often involved in various sectors of the economy including technology, manufacturing, and services.

Scopes Trial

A 1925 court case in Tennessee that challenged a law against teaching human evolution in public schools, highlighting a clash between science and religious fundamentalism.