In the financial world, the Black-Scholes and the binomial option valuation models are two of the most important concepts in ...

They are widely used in option pricing, real option analysis, and evaluating competing projects, often incorporating probability models. Binomial option pricing models rely on decision trees to ...

Binomial pricing and hedging. The Black-Scholes model as a high-frequency limit of the binomial model, and associated hedging and market-making techniques. Overview of option pricing applications in ...