In a binomial option pricing model, the initial value of the call can be determined by working backward through the tree and solving for each of the remaining intermediate option values.

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This is true. The binomial option pricing model involves constructing a binomial tree to represent the possible future stock price movements and determining the value of the option at each node of the tree. The model can be solved backward from the final node to calculate the initial value of the call option by determining the expected payoffs at each node and using a discount factor to bring the payoffs back to the present time.

In a Binomial Option Pricing Model, the Initial Value of the Call