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    Exam 19: Monte Carlo Valuation
  5. Question
    When Valuing Options Using True Probabilities,the Discount Rate Is Computed
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When Valuing Options Using True Probabilities,the Discount Rate Is Computed

Question 20

Question 20

Multiple Choice

When valuing options using true probabilities,the discount rate is computed as follows:


A) Once using the risk-free rate
B) At the final period
C) For each node
D) For each path

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