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Option pricing with the binomial model

Introduction The course I am teaching considers option valuation methodologies, in particular the Black Scholes and binomial tree. There are many steps needed to derive these models. In preparation for...

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Option pricing with Black-Scholes

Introduction Black, Scholes and Merton’s famous option price formula wasn’t a new discovery, as shown in the next section. The formula was well know at the time and widely used in the option market....

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