What Is the Recommended Way of Making Volatility a Function

question 17

Multiple Choice

What is the recommended way of making volatility a function of time in a Cox,Ross,Rubinstein tree?

• A) Make u a function of time
• B) Make p a function of time
• C) Make u and p a function of time
• D) Make the lengths of the time steps unequal

---

Definitions:

Identities

The attributes, convictions, demeanor, appearance, and/or mannerisms that constitute an individual’s (personal identity) or collective’s (specific societal class or social group) essence.

Emotional remarriage

The act of developing a deep emotional connection and commitment with a new partner after the cessation of a previous marriage-like relationship.

Psychic remarriage

An emotional process during which an individual achieves a renewed sense of commitment or attachment to another person, usually following personal growth or after a loss.

Emotional remarriage

The process of forming a deep emotional connection and commitment to a new partner after the end of a previous marriage, without necessarily legally marrying again.