Consider the the binomial option pricing model, where the constants (u) and (d) are used to generate
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Consider the the binomial option pricing model, where the constants \(u\) and \(d\) are used to generate future states \(S^{u}=u S\) and \(S^{d}=d S\), and where \(r\) is the risk free interest rate. Show that if \(d
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Lectures On Corporate Finance
ISBN: 9789812568991
2nd Edition
Authors: Peter L Bossaerts, Bernt Arne Odegaard
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