Derivatives Q120

120Which of the following statements is most accurate? In a binomial model:

A
the price of an option will be high if the actual probabilities of the up and down moves are high.
B
the price of an option will be low if the actual probabilities of the up and down moves are high.
C
the actual probabilities of the up and down moves are irrelevant to pricing options.

Option : C
Explanation : The actual probabilities of the up and down moves are irrelevant to pricing options.

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