# Binomial option pricing model

- An option pricing model in which the underlying asset can take on only two possible, discrete values in the next time period for each value that it can take on in the preceding time period.
__The New York Times Financial Glossary__

*Financial and business terms.
2012.*

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**binomial option pricing model**— See binomial model. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 … Law dictionary**Binomial Option Pricing Model**— An options valuation method developed by Cox, et al, in 1979. The binomial option pricing model uses an iterative procedure, allowing for the specification of nodes, or points in time, during the time span between the valuation date and the… … Investment dictionary**binomial option pricing model**— An option pricing model in which the underlying asset can assume one of only two possible, discrete values in the next time period for each value that it can take on in the preceding time period. Bloomberg Financial Dictionary … Financial and business terms**Binomial options pricing model**— BOPM redirects here; for other uses see BOPM (disambiguation). In finance, the binomial options pricing model (BOPM) provides a generalizable numerical method for the valuation of options. The binomial model was first proposed by Cox, Ross and… … Wikipedia**Trinomial Option Pricing Model**— An option pricing model incorporating three possible values that an underlying asset can have in one time period. The three possible values the underlying asset can have in a time period may be greater than, the same as, or less than the current… … Investment dictionary**Two-state option pricing model**— An option pricing model in which the underlying asset can take on only two possible (discrete) values in the next time period for each value it can take on in the preceding time period. Also called the binomial option pricing model. The New York… … Financial and business terms**two-state option pricing model**— A pricing equation allowing an underlying asset to assume only two possible (discrete) values in the next time period for each value it can take on in the preceding time period. Also called the binomial option pricing model. Bloomberg Financial… … Financial and business terms**Option Pricing Theory**— Any model or theory based approach for calculating the fair value of an option. The most commonly used models today are the Black Scholes model and the binomial model. Both theories on options pricing have wide margins for error because their… … Investment dictionary**Monte Carlo methods for option pricing**— In mathematical finance, a Monte Carlo option model uses Monte Carlo methods to calculate the value of an option with multiple sources of uncertainty or with complicated features. [1] The term Monte Carlo method was coined by Stanislaw Ulam in… … Wikipedia**binomial model**— Also known as the binomial option pricing model or the lattice model. A financial option pricing model to estimate the expected value of share based payments using the variables of dividend yield, exercise period, exercise price, market price,… … Law dictionary