= Mark Rubinstein
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<Mark Rubinstein> worked on <option pricing>, including the <Cox--Ross--Rubinstein model> developed with <John C. Cox> and <Stephen A. Ross>. Their 1979 paper constructs an accessible discrete-time model in which successive up and down moves form a <binomial price tree>. Replicating a contingent payment with traded assets determines its value under the model's <no-arbitrage> assumptions.<Option Pricing: A Simplified Approach by John C. Cox and others>[1979, sections on the basic idea and the multiperiod model; author list]{ref}
The construction makes the relation between hedging and valuation explicit. Its <risk-neutral probabilities> are weights consistent with the model's prices, rather than predictions of the actual frequency of an upward market move. Refining the time steps also connects the discrete model to the <Black-Scholes model>.<Option Pricing: A Simplified Approach by John C. Cox and others>[Multiperiod valuation and the limiting case]{ref}
\Image[https://newsroom.haas.berkeley.edu/wp-content/uploads/2019/05/Prof.-Mark-Rubinstein-in-his-home-library.jpg]
{title=Portrait of <Mark Rubinstein>}
{description=Jim Block; photograph in his home library, 2002, hosted by Berkeley Haas.}
{source=https://newsroom.haas.berkeley.edu/prof-emeritus-mark-rubinstein-financial-engineering-pioneer-passes-away/}
{width=260}
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