If an infinite number of intervals is applied to the binomial option pricing model,then the value of a call is equal to:
A)the risk-free rate of return.
B)zero.
C)the exercise price.
D)the Black-Scholes model's call value.
E)the stock price.

Name: If an infinite number of intervals is applied to the binomial option pricing model,then the value of a call is equal to: A)the risk-free rate of return. B)zero. C)the exercise price. D)the Black-Scholes model's call value. E)the stock price.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

The Answer is D

If an Infinite Number of Intervals Is Applied to the Binomial