Question: True or False? The Black-Scholes options pricing model extends and/or is similar to the Binomial model by assuming a continuous distribution of returns on the

True or False?

The Black-Scholes options pricing model extends and/or is similar to the Binomial model by assuming a continuous distribution of returns on the underlying asset, continuous versus discrete time, and prices the option using a replicating portfolio and a no-arbitrage condition.

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