Question: Question 2 0 ( 1 point ) If the binomial model is extended to multiple periods for a fixed option life, which of the following
Question point
If the binomial model is extended to multiple periods for a fixed option life, which of the following adjustments must be made?
the up and down factors must be increased
the riskfree rate must be increased
none of the above
the initial stock price must be proportionately reduced
the up and down factors and the riskfree rate must be decreased
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