1.3 The multi-period binomial model - Stochastic Calculus for Finance I

In this video, we review pages 8 to 15 from Steven Shreve's Stochastic Calculus for Finance part I where we derive the risk-neutral price and delta hedge required for a multi-period binomial model. We revisit the delta hedging formula and risk-neutral pricing formula within a multi-period model to demonstrate how they can influence the fair price of the option at time 0.
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