Which of the Following Is Possible in a Modified Cox,Ross,Rubinstein

question 7

Multiple Choice

Which of the following is possible in a modified Cox,Ross,Rubinstein binomial tree?

• A) The interest rate and volatility can both be functions of time
• B) The interest rate or the volatility can be a function of time, but not both
• C) The interest rate can be a function of time but the volatility cannot
• D) The interest rate and volatility must be constant

---

Definitions:

Force or Fear

The use of physical power or threats to make someone act against their will.

Defense of Property

This refers to the legal doctrine that allows individuals to use reasonable force to protect their property from theft or damage.

Statute of Limitations

A law prescribing the maximum period within which legal action can be taken for alleged offenses or rights violations.

Deadly Force

The use of force that is likely to cause death or serious bodily harm, often discussed in the context of self-defense or law enforcement.