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In binomial approach of option pricing model value of stock is...

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Financial Management
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In binomial approach of option pricing model, value of stock is subtracted from call option obligation value to calculate

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Correct Answer: Option A
In binomial approach of option pricing model, value of stock is subtracted from call option obligation value to calculate current value of portfolio. It is referred to as mark-to-market and involves multiplying the current share price of the stock by the number of shares owned and summing these values for a total portfolio value.
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