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:

Massed Study

An educational technique involving studying material intensely over a short period of time without taking breaks, contrasted with spaced repetition.

Long-Term Retention

The ability to hold onto information or skills for extended periods, often many years.

Working Memory

An intellectual mechanism with finite space, dedicated to briefly storing data for further manipulation.

Echoic Memory

A subtype of sensory memory that retains auditory information for a short period after the original sound is heard.