The binomial option pricing model is an options valuation method. Developed in the 1970s by economists John Cox, Stephen Ross, and Mark Rubinstein, the binomial model offers a more intuitive ...

The binomial model provides a multi-period view of the underlying asset price as well as the price of the option. The ...

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 ...

Many of the problems with real-options analysis stem from the use of the Black-Scholes-Merton model, which isn’t suited to real options. Binomial models, by contrast, are simpler mathematically ...

This study extends the Poisson binomial distribution by introducing correlation and dependence between binomial events, enhancing its ability to capture complex event types and improving model ...

The binomial options pricing model, developed by John Cox, Stephen Ross, and Mark Rubinstein in 1979, offers a different approach that addresses some of Black-Scholes' limitations.

Reviewed by Samantha SilbersteinReviewed by Samantha Silberstein. Developed in the 1970s, the binomial option pricing model is a deceptively simple approach to a notoriously complex problem.