Question: Binomial trees can be used A. solely for valuing plain vanilla European put and call options. B. for valuing not only stock options but also

Binomial trees can be used

A.

solely for valuing plain vanilla European put and call options.

B.

for valuing not only stock options but also options on stock indices, currencies and futures but the basic approach for constructing the tree is quite different.

C.

for valuing not only stock options but also options on stock indices, currencies and futures and the basic approach for constructing the tree is similar in all cases.

D.

to value standard European put and call options, but not exotic options.

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