Search results with tag "One period"

Lecture 3.1: Option Pricing Models: The Binomial Model

13 Two‐Period Binomial Model We now let the stock go up/down another period so that it ends up Su2, Sud or Sd2. See Figure 4.3. The option expires after two periods with three possible values: 14 15 16 After one period the call will have one period to go before expiration.

  Lecture, Model, Periods, One period