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%

---

Definitions:

Glycogen

A multibranched polysaccharide of glucose that serves as a form of energy storage in animals and fungi.

Short-Term Energy

Energy available for immediate use, typically referring to biological systems or temporary power solutions.

Neuropeptide Y

A neurotransmitter involved in various physiological processes, including stress response, appetite control, and energy balance.

Glucose

A simple sugar that is an important source of energy in living organisms and a component of many carbohydrates.