question archive In the binomial model of option pricing, one can assume that all investors are risk neutral and apply the so-called "risk neutral valuation"
In the binomial model of option pricing, one can assume that all investors are risk neutral and apply the so-called "risk neutral valuation"
Subject:FinancePrice: Bought3
In the binomial model of option pricing, one can assume that all investors are risk neutral and apply the so-called "risk neutral valuation". Explain the financial importance of this concept within the binomial model.
