Binomial option pricing model: up/down jumps based on volatility (FRM T4-7)

[@istvanbaksa5652]

Great video, this was exactly the insight I needed.

[@nononnomonohjghdgdshrsrhsjgd]

where do we get sigma by pricing options with binomial trees in reality? Implied volatilitiy surface or historical volas? And how does the risk neutral risk density come into play? Thank you in advance for the answer

[@Deshammanideep]

Find the google sheet here. docs.google.com/spreadsheets/d/1F-whVBUZqf-pdqCr3YJeM8C5znAJGN5d2v9nd_xVOWg/edit?usp=sharing