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Basic Question 6 of 8

According to the binomial model, the value of a call option is NOT determined by ______.

A. the probabilities of the up and down moves
B. the volatility of the underlying
C. the risk-free rate

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain how to value a derivative using a one-period binomial model

CFA® 2025 Level I Curriculum, Volume 5, Module 10.