Valuing options with the binomial options pricing model

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Reference no: EM131519468

1. Explain the no arbitrage approach to valuing options with the Binomial options pricing model.

2. Use the concept of synthetic securities to describe put-call parity and how that results in an equilibrium value for a put option.

3. Explain the risk neutral pricing approach to valuing options with the BOPM.

Reference no: EM131519468

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