In the ASM Manual, section 13.1, it states:
"The payoff of an Asian option depends on the path of stock prices. When constructing a binomial tree, it won't recombine."
Can you define what recombine means in this statement?
Thanks
"The payoff of an Asian option depends on the path of stock prices. When constructing a binomial tree, it won't recombine."
Can you define what recombine means in this statement?
Thanks
Asian Options - Binomial Trees
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