In the Commonly Used Multiplicative Binomial,it Is Assumed That the Underlying

question 65

Multiple Choice

In the commonly used multiplicative binomial,it is assumed that the underlying factor

• A) moves up by a factor u > 1 with probability p.
• B) moves down by a factor u > 1 with probability p.
• C) moves down by a factor d < 1 with probability 1 - p.
• D) either A or B
• E) either A or C

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