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Binomial call-price recursion
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Mathematics
Area of mathematics
Mathematical optimization
Mathematical finance
Fundamental theorem of asset pricing
European call option
Created
2026-09-24
Updated
2026-09-24
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Conditioning on the
first
binomial move expresses
a
call with
N
+
1
periods
as
a
positive weighted
sum
of two
N
-period calls with rescaled strikes.
Ancestors
(7)
European call option
Fundamental theorem of asset pricing
Mathematical finance
Mathematical optimization
Area of mathematics
Mathematics
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Past exam of the mathematics course of the University of Cambridge
/
2025
/
ii
/
Paper 3
/
29K
/
c
/
Solution
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