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Basic Question 6 of 8
According to the binomial model, the value of a call option is NOT determined by the ______.
B. volatility of the underlying
C. risk-free rate
A. probabilities of the up and down moves
B. volatility of the underlying
C. risk-free rate
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Edward Liu
Learning Outcome Statements
describe and interpret the binomial option valuation model and its component terms;
describe how the value of a European option can be analyzed as the present value of the option's expected payoff at expiration;
CFA® 2025 Level II Curriculum, Volume 5, Module 32.