Binomial model

英文Binomial model

中文 (征集中)

英文释义

(1)Any model that incorporates a binomial tree, also called a binomial lattice. (2) Describes the evolution of a random variable over a series of time steps, assigning given probabilities to a rise or fall in the variable. After the initial rise or fall, the next two branches will each have two possible outcomes and so the process will continue, building a ‘tree over time. The process is usually specified such that an upward movement followed by a downward movement results in the same price, so that the branches recombine. Binomial trees are of interest because they can be used to deal with American-style features: the early exercise condition can be tested at each point in the tree

中文释义

(征集中)

词条来源 网络

Entries个相关