Question
Explain in what sense the binomial model (as opposed to the trinomial model) has built into it the assumption that the market is liquid. Present
Explain in what sense the binomial model (as opposed to the trinomial model) has built into it the assumption that the market is liquid. Present examples where it is potentially disastrous to assume that the market is liquid.
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
