Comparing of the binomial model and the Black-Scholes model for options pricing

Authors

  • Limonka Filo Lazarova "Goce Delcev" University Faculty of Computer Science
  • Biljana Jolevska-Tuneska Ss.Cyril and Methodius University, Skopje Faculty of Electrical Engineering and Information Technologies,
  • Tatjana Atanasova-Pacemska "Goce Delcev" University Faculty of Computer Science

Abstract

In this paper will be considered the simple binomial model with one and more periods. It will be given the correspondence between binomial model and the Black-Scholes model for option pricing and also will be shown that the binomial model is more simple then the continuous Black-Scholes model from pedagogical point of view.

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Published

2015-05-21

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