Question: Question 2 [10 marks] (a) Why is the binomial model a useful technique for approximating options prices from the Black-Scholes model? [5 marks] (b) Describe

Question 2 [10 marks] (a) Why is the binomial model a useful technique for approximating options prices from the Black-Scholes model? [5 marks] (b) Describe some applications and uses of this model. [5 marks]

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