Using the BinomCall and BinomPut functions, compute the binomial approximations for the options in Examples 12.1 and 12.2. Be sure to compute prices for  = 8, 9, 10, 11, and 12. What do you observe...


Using the BinomCall and BinomPut functions, compute the binomial approximations for the options in Examples 12.1 and 12.2. Be sure to compute prices for
 = 8, 9, 10, 11, and 12. What do you observe about the behavior of the binomial approximation?



May 05, 2022
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