Regarding the pricing of fixed-income investments with binominal trees, a risk-neutral approach assumes that the value ofthe asset:
A. Does not change.
B. Changes in a random way.
C. Grows at the risk-free rate.
D. Grows at the rate of expected returns.
Answer：C
A risk-neutral apprcach is one in which the value ofthe underlying asset is assumed to grow at the risk-free rate.