Explain what is meant by a recombining binomial tree state


(i) Explain what is meant by a recombining binomial tree.

(ii) State the advantage and disadvantage of using a recombining tree [vis-à-vis a non-recombining tree] to model share price movements?

Solution Preview :

Prepared by a verified Expert
Macroeconomics: Explain what is meant by a recombining binomial tree state
Reference No:- TGS01394792

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)