Question: 1- American put option prices can be calculated with a) binomial trees but only if the stock pays dividends b) binomial trees c) binomial trees
1- American put option prices can be calculated with
a) binomial trees but only if the stock pays dividends
b) binomial trees
c) binomial trees but only if the stock does not pay any dividends
d) the black scholes formula
2- The movements of a call option are:
a) uncorrelated with those of the underlying asset
b) negatively correlated with those of the underlying asset
c) difficult to measure
d) positively correlated with those of the underlying asset
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
