Examlex
Which of the following describes how American options can be valued using a binomial tree?
Independent Variable
A variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.
Dependent Variable
In an experimental setting, it is the variable being tested and measured, expected to change as a result of manipulations to the independent variable.
Internal Validity
The degree to which an experiment or study accurately measures or tests what it intends to, without the influence of external factors.
Operationalizing
The process of defining a research variable in practical, measurable terms, allowing it to be quantitatively or qualitatively analyzed.
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