Yang Shao-hua
Abstract
Binomial tree model is an important option pricing's method.This paper establishes equations by original moments of stocks price to achieve binomial tree model's new parameters,so binomial tree model is improved by new parameters and avoids old binomial tree model's defect.
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Binomial tree model is an important option pricing's method.This paper establishes equations by original moments of stocks price to achieve binomial tree model's new parameters,so binomial tree model is improved by new parameters and avoids old binomial tree model's defect.
Key concepts: Binomial options pricing model, Trinomial tree, Binomial (polynomial), Binomial distribution, Tree (set theory), Continuity correction, Negative binomial distribution, Econometrics