1) Compare the variables in the Binomial model with those in the black-schooled model. Discuss which ones...
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Question:
1) Compare the variables in the Binomial model with those in the black-schooled model. Discuss which ones differ between the two models. Explain how this variable is presented in the each of these models, and how they are related.
2) identify and explain two anomalies in the market which the black-s holes model cannot explain.
3) identify two factors which are not part of the black-scholars model which may account for the situation discussed in part b.
Related Book For
Principles Of Econometrics
ISBN: 9781118452271
5th Edition
Authors: R Carter Hill, William E Griffiths, Guay C Lim
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