1. Nicole Seaman

    P1.T4.811. Two-step binomial models (Hull Ch.13)

    Learning objectives: Calculate the value of an American and a European call or put option using a one-step and two-step binomial model. Describe how volatility is captured in the binomial model. Questions: 811.1 Consider a six-month at-the-money (ATM) European call option on a...