Lecture
Binomial Pricing and Replication
In course
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Description
This lecture covers the concepts of cash, forwards, options, and the one-period binomial pricing model. It explains how to replicate payoffs using a portfolio of cash, the underlying asset, and European call options. The lecture also delves into the interpretation of prices in a risk-neutral world and explores the implications of different states in the binomial model.
Instructors (2)
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