In a Binomial Model,if the Call Price in the Market

question 27

Multiple Choice

In a binomial model,if the call price in the market is higher than the call price given by the model,you should

• A)sell the call and sell short the stock
• B)buy the call and sell short the stock
• C)buy the stock and sell the call
• D)buy the call and buy the stock
• E)none of the above

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Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Fixed-Interval Schedule

A schedule in which a fixed amount of time must elapse between the previous and subsequent times that reinforcement is available.

Variable-Interval Schedule

A schedule in which a variable amount of time must elapse between the previous and subsequent times that reinforcement is available.