In a Binomial Option Model with Three Subintervals, the Probability

question 64

Multiple Choice

In a binomial option model with three subintervals, the probability that the stock price moves up every possible time is ________.

• A) 25%
• B) 15.5%
• C) 12.5%
• D) 8%

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Definitions:

UPC Codes

Universal Product Codes are unique 12-digit numbers used to identify retail products globally, facilitating the tracking and sale of products in stores.

Quantitative Research

A research method focused on gathering and analyzing numerical data to identify patterns, behaviors, or trends.

Scanner Data

A type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of UPC codes at check-out counters.

Articulate Experiences

means to express or convey one's personal or shared experiences in a clear and effective manner.