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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