The Chapter Discusses an Alternative to the Cox,Ross,Rubinstein Tree

question 19

Multiple Choice

The chapter discusses an alternative to the Cox,Ross,Rubinstein tree.In this alternative,which of the following are true:

• A) The relationship between u and d is: u=1/d
• B) The relationship between u and d is: u-1=1-d
• C) The probabilities on the tree are all 0.5
• D) None of the above

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Definitions:

Proposition

An assertion or declaration that conveys an opinion or judgment, which may be either true or false.

Contraries

Things or propositions that are opposite in nature, characteristic, or definition.

Universal

Including, relating to, or affecting all members of the class or group under consideration.

Particular

Referring to a specific detail or instance among general examples.