On the Relation Between Binomial and Trinomial Option Pricing Models

This paper shows that the binomial option pricing model, suitably parameterized, is a special case of the explicit finite difference method.

Year of publication:	2000-05-01
Authors:	Rubinstein, Mark
Institutions:	Institute of Business and Economic Research (IBER), Walter A. Haas School of Business
Subject:	binomial option pricing model \| trinomial \| explicit finite difference

Extent:	application/pdf
Series:	Research Program in Finance, Working Paper Series.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Research Program in Finance
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010537547