New answers tagged binomial-tree
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Stock price modelling under binomial tree model?
Typically the binomial tree is written as:
$$S_{t+\Delta t} = uS_t$$
$$S_{t+\Delta t} = dS_t$$
where $u=e^{\sigma\sqrt{\Delta t}}$ and $d=e^{-\sigma\sqrt{\Delta t}}$.
There is $Z$ instead to ...
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