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Question 1 [ll| marks] (a) Why is the binomial model a useful technique for approximating options prices from the BlackScholes model? [5 marks] (b) Describe
Question 1 [ll| marks] (a) Why is the binomial model a useful technique for approximating options prices from the BlackScholes model? [5 marks] (b) Describe some applications and uses of this model. [5 marks]
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
