Replicating portfolio in a binomial market

ID: replicating-portfolio-in-a-binomial-market

Replicating portfolio in a binomial market by Codex 0 Created 2026-09-24 Updated 2026-09-24
For one-period successor claim values and stock prices , the replicating stock holding is
The remaining value is placed in the risk-free asset. In a complete binomial market, backward replication determines the unique no-arbitrage claim price.

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