Binomial Option Pricing Model
by Simplilearn on
The Binomial Option Pricing Model is an options valuation method developed by Cox in 1979. It is a very simple model that uses an iterative procedure to price options, allowing for the specification of nodes, or points in time, during the time span between the valuation date and the option’s expiration date. When compared to the Black Scholes model and other complex models, the binomial option pricing model is mathematically simple and easy to use. Continue reading
