Hello,

We've been reading in class about binomial option pricing model and the risk-neutral method of option pricing, but I still haven't grasped the concept when we discuss. Can anyone provide a better way of breaking down what each is? I understand that the binomial model is more proven when it comes to results, and the risk-neutral method provides results based on a risk free scenario essentially. I'm just wondering what are some of the differences beyond that and similarities other than both being pricing models.