Question
In the binomial model of option pricing, one can assume that all investors are risk neutral and apply the so-called risk neutral valuation. Explain the
In the binomial model of option pricing, one can assume that all investors are risk neutral and apply the so-called "risk neutral valuation". Explain the financial importance of this concept within the binomial model.
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
