Question: Why is the binomial model a useful technique for approximating options prices from the Black Scholes(Merton) model? Describe some applications and uses of this model.

Why is the binomial model a useful technique for approximating options prices from the Black Scholes(Merton) model? Describe some applications and uses of this model. Does putcall parity always hold in financial markets? If not, give a few reasons why it may not hold

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2. Information that comes most readily to mind (availability).

3. An initial value (anchoring).

4. Similarity (representativeness).