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Discrete-time binomial market
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Words: 218
Articles: 4
At each period a risky asset in a binomial market has one of two returns, while the risk-free asset grows by a fixed factor. When the risk-free return lies strictly between the two stock returns, the market is arbitrage-free and complete.
Table of contents
218
4
Risk-neutral probability in a binomial market
Discrete-time binomial market
38
Replicating portfolio in a binomial market
Discrete-time binomial market
78
1
Backward option pricing
Replicating portfolio in a binomial market
39
Stock-numeraire measure in a binomial market
Discrete-time binomial market
61
Ancestors
(5)
Mathematical finance
Mathematical optimization
Area of mathematics
Mathematics
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