In the two state option pricing model,which of the following does not influence the option price? A) Past stock price B) Up and down factors u and d C) The risk free rate D) The exercise price E) Current stock price

Question

Quizplus · Accepted Answer

The past stock price does not influence the option price in the two state option pricing model. The option price is determined by the current stock price, the exercise price, the up and down factors, and the risk-free rate.

In the Two State Option Pricing Model,which of the Following