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Question:

Which of the following is least likely a required input to a one-period binomial model for option pricing?

A An estimate of the probability of an up-move.
explanation

A binomial model for option pricing does not require the analyst to estimate the probability of an up-move or down-move. Instead risk-neutral pseudo-probabilities are calculated using the risk-free rate and the sizes of an up-move and down-move of the underlying asset.

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