The Black-Scholes Model and the Binomial Model are based on similar assumptions; however, there are some important differences between the two models. Use a specific
The Black-Scholes Model and the Binomial Model are based on similar assumptions; however, there are some important differences between the two models. Use a specific example to illustrate a difference between the two models. How does the concept of no arbitrage affect each model?
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Authors: Helen F. Ladd, Margaret E. Goertz
2nd Edition
0415838010, 978-0415838016
