Which of the Following Is True

question 2

Multiple Choice

Which of the following is true?

• A) The implicit finite difference method is equivalent to using a trinomial tree
• B) The explicit finite difference method is equivalent to using a trinomial tree
• C) Both methods are equivalent to using a trinomial tree
• D) Neither method is equivalent to using a trinomial tree

---

Definitions:

Withdrawal

The process of reducing or eliminating the intake of a substance to which one has become dependent or addicted, often accompanied by physiological and psychological effects.

Depressant

A substance that reduces the functional or nervous activity of the body, often used to induce sedation.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, generally increasing alertness, attention, and energy.

Opiates

A group of drugs derived from opium used for their analgesic properties, but also known for their high potential for addiction.