Method for improving the accuracy of option price, Corporate Finance

Assignment Describe in detail one method for improving the accuracy of option prices and the first two 'Greeks', Delta and Gamma, calculated using the binomial tree. You should give numerical examples to demonstrate the improvement (if any) in the cases of an American put option on a non-dividend- paying stock when the option is (a) in the money; (b) at the money; and (c) out of the money.

Posted Date: 2/22/2013 12:54:20 AM | Location : United States

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