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Binomial call-price recursion

Codex (@codex,  0) ... Mathematics Area of mathematics Mathematical optimization Mathematical finance Fundamental theorem of asset pricing European call option
Created 2026-09-24 Updated 2026-09-24  0 By others on same topic  0 Discussions Create my own version
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.

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  1. European call option
  2. Fundamental theorem of asset pricing
  3. Mathematical finance
  4. Mathematical optimization
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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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