The basic method of calculating the binomial options model is to use the same probability each period ... asset and the exercise price. The formula for this calculation is [max(P-K),0].
Decision trees are a major tool in corporate finance. Discover how binomial trees play an integral role in the pricing of interest rates.
The basic method of calculating the binomial options model is to use the same probability each period ... asset and the exercise price. The formula for this calculation is [max(P-K),0].