This note is intended to introduce the binomial option-pricing model. It covers the basic concepts of using a single period model, and then an example of a two period model. Note focuses on the conceptual approach to the binomial option pricing, not formulas.
This Darden study. "Hide
by Robert M. Conroy Source: Darden School of Business 12 pages. Publication Date: March 29, 1991. Prod. #: UV0456-PDF-ENG