Which of the Following Is True for U in a Cox-Ross-Rubinstein

question 11

Multiple Choice

Which of the following is true for u in a Cox-Ross-Rubinstein binomial tree?

• A) It depends on the interest rate and the volatility
• B) It depends on the volatility but not the interest rate
• C) It depends on the interest rate but not the volatility
• D) It depends on neither the interest rate nor the volatility

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