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

---

Definitions:

Slip Opinion

A judicial opinion published shortly after the decision is made and not yet included in a case reporter or advance sheets.

Case Reporter

A publication that compiles judicial decisions from courts, providing references for legal precedent and interpretation.

Parallel Citations

References provided for a legal case that appear in more than one reporting system, offering multiple sources for locating the case documentation.

Separated

Refers to a status where individuals, often spouses, live apart from each other but aren't legally divorced.