= Lattice model (finance)
{wiki=Lattice_model_(finance)}
The Lattice model in finance refers to a method of pricing options and other derivatives using a discrete-time framework that represents the underlying asset's price dynamics as a lattice or tree. The most commonly known form of this model is the Binomial Lattice Model. \#\#\# Key Features of a Lattice Model: 1. **Discrete Time**: The model works over discrete time intervals, where asset prices can change at each time step.
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