In the Ho-Lee model the risk neutral probability must vary because the returns R(n, j) are variable. is always constant. must vary because of the third assumption of the Ho-Lee model. O is not an important parameter.
In the Ho-Lee model the risk neutral probability must vary because the returns R(n, j) are variable. is always constant. must vary because of the third assumption of the Ho-Lee model. O is not an important parameter.
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text:In the Ho-Lee model the risk neutral probability
must vary because the returns R(n, j) are variable.
is always constant.
must vary because of the third assumption of the Ho-Lee model.
O is not an important parameter.
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