Chapter 13 Binomial Trees (Hull, 10th edition)

The binomial option pricing model values options using an iterative approach utilizing multiple periods to value options. When using a binomial model, there are only two possible outcomes with each iteration-a move up or a move down that follow a binomial tree. In the limit of an infinite number of interations it can be shown that the binomial model gives the same result as the Black-Scholes option pricing model. This lecture following the PPTs from the 2017 version of Chapter 13 Binomial Trees in Hull, Options, Futures, and Derivatives.

[@john-od9sl]

Thank you !

[@kaywa8537]

Hi, thank you for these videos they are extremely well explained, will you be doing an episode on option greeks, chapter 17 I believe. Thanks