In the binomial stock price tree what restrictions are, Finance Basics

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In the binomial stock price tree what restrictions are

Question: a. In the binomial options pricing model, what assumptions are made about dividends and interest rates?

b. In the binomial stock price tree, what restrictions are needed on the up and down factors, relative to the risk-free rate, to avoid arbitrage? Explain.

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Finance Basics: In the binomial stock price tree what restrictions are

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Finance Basics: In the binomial stock price tree what restrictions are

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