Question: Consider the one period binomial model with a single risky asset S1S1. If its price 11 satisfies 1max(S1(H),S1(T))1max(S1(H),S1(T)), then the model admits an arbitrage opportunity,

Consider the one period binomial model with a single risky asset S1S1. If its price 11 satisfies 1max(S1(H),S1(T))1max(S1(H),S1(T)), then the model admits an arbitrage opportunity, independent of the risk-free interest rate rr.

Select one: False or True Consider the one period binomial model with a single risky asset S1S1.

Consider the one period binomial model with a single risky asset Sj. If its price 11 satisfies 11 > max(Si(H), Si(T)), then the model admits an arbitrage opportunity, independent of the risk-free interest rate r. Select one: O True O False Consider the one period binomial model with a single risky asset Sj. If its price 11 satisfies 11 > max(Si(H), Si(T)), then the model admits an arbitrage opportunity, independent of the risk-free interest rate r. Select one: O True O False

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