Price of a call option using multistep binomial model
Question: You are determining the price of a call option using a multistep binomial model. Please explain if it is possible to create an initial position in the stock and the call option that will remain riskless for the entire life of the option.
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You are determining the price of a call option using a multistep binomial model. Please explain if it is possible to create an initial position in the stock
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