Can anyone pls explain how Number of up moves and down moves are calculated in a Binomial Tree model? Market risk question
”The probability of up move is given (p-60%). Magnitude of up-move id +50bps and down move is -30bps. Its being mentioned in the answer that up moves are 4 and down moves are 2 (6 nodes are given). I am not getting this. Pls tell………plssssssssssssssss
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