Which One of These Statements Is True

question 30

Multiple Choice

Which one of these statements is true?

• A)The Black-Scholes model is most applicable to complex situations.
• B)The binomial model is limited to a two-period time sequence.
• C)The binomial model is limited to ten time intervals for any single analysis.
• D)The binomial model is basically equivalent to the Black-Scholes model when there is a single time interval.
• E)The Black-Scholes model is simpler to use,but for complex situations,the binomial model is preferred.

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