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two-step

  1. Nicole Seaman

    YouTube T4-06: Introduction to binomial option pricing model: two-step

    The binomial option pricing model needs: 1. A set of assumptions similar but not identical to those found in Black-Scholes; 2. A framework; i.e., risk-neutral valuation which allows us to infer the probability of an up-jump; 3. An assumption about asset dynamics, in this case that arithmetic...
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