In the binomial options pricing model, it is assumed that the stock price follows a binomial process.
Question:
a. Is this a reasonable description of the actual stock price process?
b. If not, why should one study this model?
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Related Book For
An Introduction to Derivative Securities Financial Markets and Risk Management
ISBN: 978-0393913071
1st edition
Authors: Robert A. Jarrow, Arkadev Chatterjee
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