---
title: "Lecture 12 Note"
author: "Yiming Gong"
date: "2021-08-09T02:56:08Z"
link: "https://bookdown.org/yg484/lec_12_note/"
length_weight: "2.3%"
pinned: false
---

This is the class note for lecture 12. [...] The binomial option pricing model is an options valuation method developed 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 option’s expiration date. The binomial option pricing model values options using an iterative approach utilizing multiple periods to value American options. With the model, there are two possible outcomes with each iteration—a move up or a move down that follow a binomial tree. The model is  ...
