ashycal

Aether wrote:
S2000magician wrote:My mistake: you may have to calculate an option price from a 1-period or 2-period binomial model, but not from BSM.  I was thinking only about BSM.
Sorry.
Are the CFAI rainmakers going to grace us with some assertive generosity, come exam day?
Surely you jest.
Aether wrote:
S2000magician wrote:My mistake: you may have to calculate an option price from a 1-period or 2-period binomial model, but not from BSM.  I was thinking only about BSM.
Sorry.
How did you reach that conclusion?
LOS 50b: Calculate and interpret prices of interest rate options and options on assets using one- and two-period binomial models.
CFA Institute says that you need to know how to calculate the price of options using binomial trees.
LOS 50c: Explain and evaluate the assumptions underlying the Black-Scholes-Merton model.
LOS 50d: Explain how an option price, as represented by the Black-Scholes-Merton model, is affected by a change in value of each of the inputs.
CFA Institute does not say that you need to know how to calculate the price of options using BSM.