Question: (d) In the binomial model, if the risk free rate is 0%, then it must be that the price of the digital up option and

(d) In the binomial model, if the risk free rate is 0%, then it must be that the price of the digital up option and the digital down option add up to 1
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
