see the title, when cases mention this, does that mean it should be added on the binominal spots? My question about this is pretty conceptual, I do remember OAS is for pricing, and it is option adjusted spread, why can we just add this to the binominal tree to get the price?
OAS is added to binomial tree _ forward _ rates, not spot rates.
See the article I wrote on OAS: http://www.financialexamhelp123.com/option-adjusted-spread-oas/
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