Method of option pricing that assumes the value of an asset increases and decreases by fixed proportions at a predictable schedule. Possible values of the asset can be predicted starting at the option's expiration date through the final values, which allows an individual to find the current value of the option by working backwards through the asset values by starting with the last known final option value.
Related information about binomial option pricing model:
- Binomial options pricing model - Wikipedia, the free encyclopedia
Rob Thompson; Binomial Option Pricing Model by Fiona Maclachlan, The Wolfram Demonstrations Project · On the Irrelevance of Expected Stock Returns in the ...
- Binomial Option Pricing Model Definition | Investopedia
An options valuation method developed by Cox, et al, in 1979. The binomial option pricing model uses an iterative procedure, allowing for the specification of ...
- The Binomial Option Pricing Model
The Multi-Period Binomial Option Pricing Model is extremely flexible, hence valuable; it can value American options (which can be exercised early), and most , ...
- Binomial Option Pricing _f-0943_ - University of Virginia
models that require solutions to stochastic differential equations, the binomial option-pricing model (two- state option-pricing model) is mathematically simple.
- The Binomial Option Pricing Model - CiteSeer
THE BINOMIAL OPTION PRICING MODEL with exercise price 50 solves (as indicated) to 5.749. 50. 55. 48.5. 60.50. 53.35. 47.05. 1.06. 1.06. 1.1236. 1.1236 ...
- Binomial Option Pricing Model - Wolfram Demonstrations Project
The binomial option pricing model proceeds from the assumption that the value of the underlying asset follows an evolution such that in each period it increases ...
- Binomial Option Pricing Model - YouTube
Sep 6, 2011 ... Sign in with your YouTube Account (YouTube, Google+, Gmail, Orkut, Picasa, or Chrome) to rate Arnat Leemakdej's comment. Sign in ...
- The Discrete Binomial Model for Option Pricing - University of Arizona
Consider the binomial option pricing model. Let M0,M1,ททท ,MN be a sequence of random vari- ables, with each Mn depending only on the first n coin tosses ...