American Put (Three) 3 Step | Binomial Method | European Price - EXAMPLE

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[@the_bird_is_the_word.]

This is exactly what I've been looking for. Thank you.

[@antduff2730]

Great video, if only profs could teach like this!

[@贾蕙菱]

Wow, Excellent video! I have an exam tomorrow. Thank you for posting it!

[@mackenziewood713]

Wow, this is an INCREDIBLE video tutorial. Thank you so much!

[@akshyasris3659]

good explanation sir😇

[@glomari62]

it's amazing!! really helped me understand this topic!! Thank you so much

[@shokokakehi4554]

thank you soooooo much!

[@BlessingRugara]

Hi , should the top box in step 1 be 0/1.1qu, not 0/0

[@cmdody]

Nice explanation of option pricing...

[@SzTz100]

Nice job explaining this, but perhaps the Sharpie was a bad idea in retrospect.

[@tylerabbot6678]

When using backward induction you should be using value not payoff. $$V_t = max{payoff_t, (q_uV_{t+1}^u + q_dV_{t+1}^d)1/(1+r)}$$

[@omgcoin]

Hello! excellent video. If I may, when you were calculating the values for the american put, I thought that the values were also their payoffs. Could you explain me this difference please?

[@eatlessandmovemore]

Is your hand fine?

[@gamuchidanda6773]

noted

[@henrythierry179]

Can you write a little smaller, please

[@Babz001]

Suppose the option is traded at a price different from the value obtained. Can you explain how you can obtain an arbitrage upto time 3.