Cox, Ross, & Rubinstein Option-Pricing Model

Definition

Mathematical formula for estimating the value of an American option (exercisable at any time up to the expiration date). Used in determining if the early exercise of the option is advisable, it (unlike the Black-Scholes option pricing model) assumes that the price of the underlying asset follows binomial distribution. It divides the time to expiration into a certain number of intervals over which the price of the underlying contract is allowed to move up or down according to a specified probability. Invented in 1979 by the US mathematicians John Cox, Stephen Ross, and Mark Rubinstein.

单词	Cox, Ross, & Rubinstein Option-Pricing Model
释义	Cox, Ross, & Rubinstein Option-Pricing Model Definition Mathematical formula for estimating the value of an American option (exercisable at any time up to the expiration date). Used in determining if the early exercise of the option is advisable, it (unlike the Black-Scholes option pricing model) assumes that the price of the underlying asset follows binomial distribution. It divides the time to expiration into a certain number of intervals over which the price of the underlying contract is allowed to move up or down according to a specified probability. Invented in 1979 by the US mathematicians John Cox, Stephen Ross, and Mark Rubinstein.
随便看	landing account land lease option landlocked landlocked state landlord landlord's lien landlords protective liability land rehabilitation land-to-building ratio land use planning land use regulation land use succession land value land value tax (LVT) Lanham act LAN internetwork La Niña lapping lapse lapsed policy lapse of offer lapse ratio laptop larceny large capitalization stock