I'm trying to confirm my understanding of the 2 models. It is my understanding that the black-scholes is a special case of a binomial model with infinite steps.
Does this mean that if I were to start with a Binomial model with 1 step and increase steps towards infinity I would approach the same value concluded by the black-scholes?
If so does this mean I could use the implied volatility from Black-scholes formula derived from the market price of an option with the rest of the values (r, t, K, S, σ(IV) ) and approach the same market price from the black-scholes as # of steps approaches infinity? Would this only be the case for a European call with more disagreement on the value of American options with early exercise?