In the Binomial Option Pricing Model setting identify the answer choice that best describes the following parameter: B0

In the Binomial Option Pricing Model setting identify the answer choice that best describes the following parameter: B0

The number of shares to purchase in the replicating portfolio

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The value of the call in the state of the world in which the stock decreases

The number of shares to short in the replicating portfolio

The initial stock price

An amount of money to invest in the replicating portfolio

The stock price in the state of the world in which the stock decreases

  

An amount of money to borrow in the replicating portfolio

The value of the call in the state of the world in which the stock increases

The number one plus the riskfree rate

The stock price in the state of the world in which the stock increases