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Which of the Following Statements About a Binomial Interest Rate

Question 15

Multiple Choice

Which of the following statements about a binomial interest rate derivative pricing model is INCORRECT?


A) The model can be used to price European caplets and floorlets.
B) The model can be used to price a forward rate agreement.
C) The model can be used to price a Eurodollar futures contract.
D) The model can be used to price a swaption.
E) The model can be used to price an equity option.

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