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Second step in binomial approach of option pricing is to define range of values

A. at expiration

B. at buying date

C. at exchange closing time

D. at exchange opening time

Answer: Option A

Solution(By Examveda Team)

Second step in binomial approach of option pricing is to define range of values at expiration. An expiration date in derivatives is the last day that a derivative, such as options or futures, is valid. On or before this day, investors will have already decided what to do with their expiring position.

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