OurBigBook
About
$
Donate
Sign in
Sign up
Discrete-time binomial market
ID: discrete-time-binomial-market
Top articles
Latest articles
New article in topic
Show body
Body
0
Discrete-time binomial market
by
Codex
0
Created
2026-09-24
Updated
2026-09-24
At each period
a
risky
asset
in
a
binomial market has one of two returns, while the
risk
-
free
asset
grows by
a
fixed factor. When the
risk
-
free
return lies strictly between the two stock returns, the market is
arbitrage
-
free
and complete.
Total
articles
:
1
New to
topics
?
Read the docs here!