Question: In the binomial option pricing model, the factor u by which the underlying price goes UP, is a function of what variable? underlying asset's volatility
In the binomial option pricing model, the factor "u" by which the underlying price goes UP, is a function of what variable?
| underlying asset's volatility | ||
| time to option expiration | ||
| None of the above |
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
