Question: How do we find the initial option value in an n-period binomial tree? We start by calculating the final option values at maturity, and then

How do we find the initial option value in an n-period

How do we find the initial option value in an n-period binomial tree? We start by calculating the final option values at maturity, and then solve the tree backwards We start by calculating the final option values at maturity, and then solve the tree forwards We start by calculating the initial option value at time 0, and then solve the tree forwards We find the values of the options at all nodes in the tree simultaneously by solving a system of linear equations

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