Question: Introduce the binomial model within the framework of option pricing theory. Successively, describe its design, underlying assumptions and main characteristics. Make sure you analyse both

Introduce the binomial model within the framework of option pricing theory. Successively, describe its design, underlying assumptions and main characteristics. Make sure you analyse both the one-step and the two-step tree

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Introduce the binomial model of option pricing and describe its design and underlying assumptions. Make sure you consider both the one-step and the two-step tree

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