Increasing the number of intervals in the binomial model causes the price shift parameters to...
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Increasing the number of intervals in the binomial model causes the price shift parameters to change. New estimates are related to (choose one correct answer)
1. the standard deviation of the underlying asset.
2. the number of intervals in a year.
3. None of the statements.
4. All of the statements.
5. the up state multiplier equals the standard deviation divided by root n.
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