Binomial Tree (Three-Step) Simplified

In this video about the Binomial Option Pricing Model we solve a three-period binomial tree for a European call option. Here we don't go into detail about what a European option is, and we also simplify things by using the risk-free rate and assuming that the time periods are one year.

Let me know down in the comments if you succeeded in doing this exercise for a put option instead!

[darrelllloyd]

Hey this is a great video. I had a question on how I could use the binomial tree with theta and delta?