Affichage des articles dont le libellé est Binomial American Pricing -- Initial Node?. Afficher tous les articles
Affichage des articles dont le libellé est Binomial American Pricing -- Initial Node?. Afficher tous les articles

Binomial American Pricing -- Initial Node?

dimanche 16 novembre 2014

This is probably a dumb question, but do we factor in the initial node (immediate exercise) if pricing American options using the binomial model? I assume that we just compare it (if there is an immediate payoff) against the discounted future payoffs?



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Binomial American Pricing -- Initial Node?
 

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