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Binomial Trees in Option Pricing—History, Practical Applications and Recent Developments

  • Ralf Korn
  • Stefanie Müller

Abstract

We survey the history and application of binomial tree methods in option pricing. Further, we highlight some recent developments and point out problems for future research.

Keywords

Stock Price Option Price American Option Binomial Tree Stock Price Process 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  1. 1.Center for Mathematical and Computational Modeling (CM)² and Department of MathematicsUniversity of KaiserslauternKaiserslauternGermany

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