Question: 6. How do you replicate a put option in the binomial model? O [A] You buy the asset and sell a bond (= borrow cash)
6. How do you replicate a put option in the binomial model? O [A] You buy the asset and sell a bond (= borrow cash) IB You buy the asset and buy a bond O [C] You sell (short) the asset and sell a bond (borrow cash) mall(short) the asset and buy a bond
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