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Search options not deleted user 9265
1 vote
1 answer
295 views

Binomial tree notation

Can someone clarify for me the notation of the nodes in a binomial tree with more than 1 step? Is this notation correct?
AfterWorkGuinness's user avatar
5 votes
1 answer
6k views

Ho-Lee Model; Please explain

I'm having trouble with the Ho-Lee model for short rates and differentiating between how to find the values for the free parameter λ versus using the model to predict future rates. The Ho-Lee model f …
AfterWorkGuinness's user avatar
0 votes

pricing american calls on non dividend paying stocks

Even though it is not optimal to exercise early, you still have that right, thus the price must reflect it
AfterWorkGuinness's user avatar