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Basic Question 8 of 8

Which of the following factors is most likely to impact the pricing of a European put option using binomial model?

A. The magnitude of up move and down move.
B. The probability of up move and down move.
C. The probability distribution of the price of underlying at expiration

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

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

CFA® 2024 Level I Curriculum, Volume 5, Module 10.