April 2019
Intermediate to advanced
426 pages
11h 13m
English
Content preview from Mastering Python for Finance - Second Edition
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Using the trinomial lattice
The trinomial lattice works in very much the same way as the binomial lattice. Since each node recombines at every other node instead of alternate nodes, extracting odd nodes from the list is not necessary. Since the size of the list is the same as the one in the binomial lattice, there are no extra storage requirements in trinomial lattice pricing, as explained in the following diagram:
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.