The Binomial Model Always Gives the Same Option Price as the Black-Scholes-Merton

question 13

True/False

The binomial model always gives the same option price as the Black-Scholes-Merton model.

---

Definitions:

Public Good

Goods or services that are provided without profit to all members of a society, either by the government, a non-profit organization, or by a private individual or organization.

Common Good

The benefit or interests of all involved in a given community or society, often cited as a reason for ethical or political actions.

Private Good

A product or service that is consumed by an individual or a limited group, characterized by its excludability and rivalrous nature.

Common Characteristics

Shared features or qualities among items, individuals, or groups that allow them to be categorized or identified as part of a larger set.