Explain the differences between a recombining and a non-recombining tree. Why is the former more desirable?

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Introduction To Derivatives And Risk Management

ISBN: 9781305104969

10th Edition

Authors: Don M. Chance, Robert Brooks

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Question Posted: Apr 07, 2016 08:32 AM

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Explain the differences between a recombining and a non-recombining tree. Why is the former more desirable?

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In a recombining tree if the underlying first moves up and t...View the full answer

Introduction To Derivatives And Risk Management

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