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In option pricing when the binomial result equal to black scholes result?
Wiki User
∙ 12y ago
When the binomial tree has a large numbers of steps (i.e. the time interval between nodes is very small).
The spreadsheet in the related link prices options using Black-Scholes analytical equations and a binomial tree. As the number of steps in the binomial tree increase, the results of both approaches becomes equal to many decimal places.
Wiki User
∙ 12y ago
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Which of the following could result in some people being priced out the option to buy a home?
An increase in mortgage interest rates. apexxx
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Well, if you do a very specific operation, you wouldn't expect the result to be completely random.
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Can someone please List the steps to factor this Binomial 8x² - 18?
-10
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When you keep trying to reach a success. That is keep performing a trial until a certain result is achieved. For example drawing 6 cards until you receive a black card.
How you can use negative binomial distribution in everyday life?
The negative binomial can be applied in any situation in which there is a series of independent trials, each of which can result in either of just two outcomes. The distribution applies to the number of trials that occur before the designated outcome occurs. For example, if you start flipping a fair coin repeatedly the negative binomial distribution gives the number of times you must flip the coin until you see 'heads'. There are also 'everyday' applications in inventory control and the insurance industry. Please see the link.
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Is Blaise Pascal a famous mathematician?
Yes. Blaise Pascal (1623-1662) was a mathematician, physicist, inventor, and philosopher. He was one of the earliest to study binomial coefficients and the laws of probability. He created the earliest hand-powered calculating machines. Pascal's Law (pressure distribution) is a result of his study of fluids and pressure.
What are two mathods of comparing numbers?
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Which of the following could result in some people being priced out the option to buy a home?
An increase in mortgage interest rates. apexxx
