The Binomial Price Will Theoretically Equal the Black-Scholes-Merton Price Under

question 56

Multiple Choice

The binomial price will theoretically equal the Black-Scholes-Merton price under which of the following conditions?

• A)when the number of time periods is large
• B)when the option is at-the-money
• C)when the option is in-the-money
• D)when the option is out-of-the-money
• E)none of the above

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