The binomial option pricing model is:
A)bell-curve shaped.
B)symmetrical.
C)hyperbolic.
D)asymmetric.
E)curvilinear.

Question

Quizplus · Accepted Answer

The binomial option pricing model is symmetrical as it assumes that the price of an underlying asset will either go up or down with equal probability in each time period, creating two possible outcomes. This results in a symmetrical distribution of possible future prices, represented by a binomial tree.

The Binomial Option Pricing Model Is