Wöster, Christoph - Universität <Bielefeld> / Lehrstuhl für Finanzwirtschaft - 2005
The binomial model has been used to price a wide variety of equity and interest rateoptions for more than two decades. Originally developed by Cox, Ross, and Rubinsteinto clarify the basic pricing principle of its continuous-time counterpart with reduced mathematicalrequirements, the approach...