Explain the Base-case option pricing assumptions. How do we deal with volatility?

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Financial Reporting And Analysis

ISBN: 9781260247848

8th Edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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Posted Date: May 28, 2022 07:05 AM

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Explain the Base-case option pricing assumptions. How do we deal with volatility?

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The price of a binary option highly depends upon the volatility The option spread is highly aff... View the full answer

Financial Reporting And Analysis

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