Trinomial Model
The Trinomial model is an extension of the Binomial options pricing model and is commonly used to value options.
Understanding BSM Theory: Analyzing Option Prices in Financial Markets
History The groundbreaking work of economists Fischer Black and Myron Scholes in 1968 laid the foundation for a significant breakthrough in financial economics. They introduced the concept of a dynamic…
The Binomial Option Pricing Method Simplified
Introduction The binomial options pricing model (BOPM) provides a generalizable numerical method for the valuation of options which is based on a discrete-time framework, dividing time into a number of smaller intervals. The…