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11:21
YouTube
Pax Academy
One-Step Binomial Tree made EASY
This video is an introduction to the Binomial Option Pricing Model. Here we look at its simplest form - a one step (one period) binomial tree for a European call/put option. We also simplify things by using the risk-free rate and assuming that the time period is one year. 0:00 Formulas for a One-step Binomial Tree 1:45 Call Option Example 8:35 ...
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