Anchoring the Binomial Grid at K The equation (1.10) has established a kind of symmetry for the
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Anchoring the Binomial Grid at K The equation (1.10) has established a kind of symmetry for the grid. As an alternative, one may anchor the grid in another way by choosing (for even M)
S0uM/2dM/2 = K .
a) Give a geometrical interpretation.
b) Derive the relevant formula for u and d.
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