The Binomial Option Pricing Model Will Converge to What Value

question 40

Multiple Choice

The binomial option pricing model will converge to what value as the number of periods increases?

• A)a random value
• B)the Black-Scholes-Merton value of the option
• C)the intrinsic volatility of the option
• D)the true value of the underlying
• E)none of the above

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