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Option Pricing - Binomial Model

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Title:
Option Pricing - Binomial Model
Author:
Pagos
Downloads:
1293
Rating:
Language:
English
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Overview:
The Binomial Options Pricing Model (BOPM) provides a generalizable numerical method for the valuation of options. The binomial model was first proposed by Cox, Ross and Rubinstein (1979). Essentially, the model uses a “discrete-time” (lattice based) model of the varying price over time of the underlying financial instrument. In general, binomial options pricing models do not have closed-form solutions.
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