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Derivatives and Risk Management, 1st Edition
book

Derivatives and Risk Management, 1st Edition

by Sundaram Janakiramanan
May 2024
Intermediate to advanced content levelIntermediate to advanced
542 pages
27h 26m
English
Pearson India
Content preview from Derivatives and Risk Management, 1st Edition
The Binomial Options Pricing Model 365
as well as for an American call option and an American put option. We will rst deal with the simple ap-
proach called binomial options pricing and then discuss the Black–Scholes approach to options pricing
in Chapter 16.
15.1 The Binomial Options Pricing Model for Call Options
As Box 15.1 suggests, the binomial options pricing model can be considered superior to the usual Black–
Scholes model in the valuation of employee stock options. e binomial options pricing model is also
considered to be a better model for valuing interest rate options and currency options. e binomial
options pricing model ...
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Publisher Resources

ISBN: 9781299447547Publisher Website