Home > Glossary > Two-state Option Pricing Model

Meaning / Definition of

Two-state Option Pricing Model

Categories: Finance,

A pricing equation allowing an underlying asset to assume only two possible (discrete) values in the next time period for each value it can take on in the preceding time period. Also called the binomial option pricing model.

Featured term of the day

Definition / Meaning of

Storm Surge

Categories: Insurance,

removed

Most popular terms

1. Principal Register
2. Dollar-weighted Rate Of Return
3. Common Shares
4. Netting
5. Hybrid Mortgage
6. Inflation-protected Security (TIPS)
7. National Association Of Securities Dealers Automated Quotations System
8. Filing Basis
9. U.S. Treasury Securities
10. Fixed Annuity