In the binomial pricing model, an option is priced using a replicating portfolio that typically consists of a risk-free bond and the asset underlying the option.

Name: In the binomial pricing model, an option is priced using a replicating portfolio that typically consists of a risk-free bond and the asset underlying the option.
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This is true. The binomial pricing model involves creating a replicating portfolio consisting of the underlying asset and a risk-free bond in order to price an option.

In the Binomial Pricing Model, an Option Is Priced Using