Examlex
Which one of the following is NOT a condition of the binomial distribution?
Purchase Price
The amount of money paid to acquire a good, service, or financial asset.
Face Value
The nominal value printed on a bond or stock certificate; it does not fluctuate with market prices.
Forward Rate
The agreed-upon price for a transaction that will occur at a future date, as in a forward contract.
Zero-Coupon Bond
A bond that is sold at a discount and pays no interest, but is redeemed at its face value at maturity, generating a profit for the holder.
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