In a Multiperiod Binomial Model,an Arbitrage Profit Cannot Be Earned

question 48

True/False

In a multiperiod binomial model,an arbitrage profit cannot be earned until the option expires.

---

Definitions:

Just Cause

A legal standard used to determine whether an employer's action of disciplining or dismissing an employee is justified based on the employee's conduct.

Employees' Rights

Legal rights afforded to employees, including fair wages, safe working conditions, and freedom from discrimination.

Unilateral Grievance

A grievance procedure initiated by one party, either the employer or employee, without the need for mutual agreement or negotiation.

Resolution Method

A systematic approach used to resolve conflicts or problems, often involving negotiation or formal procedures.