Which of the following is NOT needed to price options using the binomial approach?

Name: Which of the following is NOT needed to price options using the binomial approach?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The value of N(d₁) refers to the probability of the underlying stock's price increasing or decreasing. While important in option pricing, it is not necessary for the binomial approach, which only requires the current price of the stock, the risk-free rate, the possible future stock prices, and the strike price of the option.

Which of the Following Is NOT Needed to Price Options