In the financial world, the Black-Scholes and the binomial option valuation models are two of the most important concepts in ...

For example, the binomial option pricing model uses discrete probabilities to determine the value of an option at expiration. The most basic binomial models assume that the value of the underlying ...

Binomial pricing and hedging. The Black-Scholes model as a high-frequency limit of the binomial model, and associated hedging and market-making techniques. Overview of option pricing applications in ...