The strength of the binomial model based on yields is that it satisfies the put-call parity relationship by taking into consideration the yield curve, thereby allowing arbitrage opportunities.

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The binomial model's strength lies in its flexibility and simplicity in pricing options by simulating different paths an asset's price can take, not in directly considering the yield curve or enabling arbitrage opportunities. The put-call parity relationship is a separate concept that applies to European options and does not depend on the binomial model's consideration of the yield curve.

The Strength of the Binomial Model Based on Yields Is