Question: Need help on these 3 easy t or f 2 3 When we value options, you may say that we are really valuing a portfolio
Need help on these 3 easy t or f
2

3

When we value options, you may say that we are really valuing a portfolio of stocks and bonds that exactly replicate the payoff of the option. True False When we value options, you may say that we are really valuing a portfolio of stock and options that exactly replicate the payoff of a risk-free bond. True False In binomial option valuation, we need to know the expected return on the stock (that is, we need the probability of the stock increasing or decreasing). True False
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