Binomial Option Pricing Model
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Binomial Option Pricing Model is an option pricing model based on a riskless hedge with two scenarios for the value of the underlying asset.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Binomial Option Pricing Model. An option pricing model based on a riskless hedge with two scenarios for the value of the underlying asset.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
