Abstract
The binomial asset-pricing model provides a powerful tool to understand arbitrage pricing theory and probability. In this chapter, we introduce this tool for the first purpose, and we take up the second in Chapter 2. In this section, we consider the simplest binomial model, the one with only one period. This is generalized to the more realistic multiperiod binomial model in the next section.
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© 2005 Springer Science+Business Media New York
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Shreve, S.E. (2005). The Binomial No-Arbitrage Pricing Model. In: Stochastic Calculus for Finance I. Springer Finance. Springer, New York, NY. https://doi.org/10.1007/978-0-387-22527-2_1
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DOI: https://doi.org/10.1007/978-0-387-22527-2_1
Publisher Name: Springer, New York, NY
Print ISBN: 978-0-387-24968-1
Online ISBN: 978-0-387-22527-2
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