?
Movement of price or rise or fall of prices of options is classified as
Answer & Solution
Correct Answer:
Option
D
Movement of price or rise or fall of prices of options is classified as binomial lattice. The binomial options pricing model provides a generalizable numerical method for the valuation of options. Essentially, the model uses a "discrete-time" model of the varying price over time of the underlying financial instrument, addressing cases where the closed-form Black–Scholes formula is wanting.
Join the Discussion
Login to post a comment or share your explanation.
Login