Taylor Series Example 1

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Excellent explanation. You're a scholar, Devin!

CogSciEso
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This was so straight forward and helped me out so much. Thank you!

katherineabdou
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finally someone who explains this well!

paulwyrough
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Hi, do you know by chance how to obtain the up- and down-movement factors u and d for Cox Ross Rubinstein in binomial tree method? How do we obtain that u and d are the exp (sigma* sqrt t)? I searched already two days for the step by step explanation of the little algebra behind the factors. For sure mathematicians understand the derivation and don't find it necessary to explain. I am not a pure mathematician, and have to say that I don't find the derivation of the factors very trivial. Thank you very much in advance!

nononnomonohjghdgdshrsrhsjgd
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Thanks for not standing in front of the board making it unreadibly as I've seen so many times.

theodoresweger