0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Is this number a monomial or binomial or trinomial 30x6-1?
Binomial. Binomial. Binomial. Binomial.
What are the shortcomings of the binomial pricing model?
b) Binomial pricing model doesnt provide for the possibility of price of the underlying remaining the same between two consecutive time points (it assumes that either the price could go up or could come down; it completely ignores the possibility of the price not changing at all) a) Binomial pricing model breaks up the time to the expiry of option in to a limited number of time intervals and hence, the price calculated through binomial trees is more of a broad approximation of the actual price. (Compare this with Black Scholes (BS) Model which gives a more accurate approximation because the BS model involves breaking the time to expiry into infinitesimaly small time intervals).
How can you dide a binomial by a binomial?
If you chew
How do you do binomial distribution?
You distribute the binomial.
Is the square of a binomial ever a binomial?
no
Why is binomial distribution important?
Binomial distribution is the basis for the binomial test of statistical significance. It is frequently used to model the number of successes in a sequence of yes or no experiments.
Is this number a monomial or binomial or trinomial 30x6-1?
Binomial. Binomial. Binomial. Binomial.
What are the shortcomings of the binomial pricing model?
b) Binomial pricing model doesnt provide for the possibility of price of the underlying remaining the same between two consecutive time points (it assumes that either the price could go up or could come down; it completely ignores the possibility of the price not changing at all) a) Binomial pricing model breaks up the time to the expiry of option in to a limited number of time intervals and hence, the price calculated through binomial trees is more of a broad approximation of the actual price. (Compare this with Black Scholes (BS) Model which gives a more accurate approximation because the BS model involves breaking the time to expiry into infinitesimaly small time intervals).
This is a polynomial with two terms?
binomial
How do you factor a binomial?
The answer depends on the binomial.
How can you dide a binomial by a binomial?
If you chew
How do you do binomial distribution?
You distribute the binomial.
Is the square of a binomial ever a binomial?
no
What is the relationship between the binomial expansion and binomial distribution?
First i will explain the binomial expansion
Is a binomial a polynomial?
yes a binomial is a polynomial
What is the binomial?
A binomial is a polynomial with two terms.
What are the conditions under which you can expect to be able to use a binomial distribution to model a probability distribution?
Two independent outcomes with constant probabilities.
