The binomial distribution is an important discrete distribution. It gives the probability of the number of "successes," in a sequence of n independent binary trials. This applet allows users to drag ...

A binomial tree is a graphical representation of possible intrinsic values that an option may take at different nodes or time periods.

Learn about the binomial option pricing models with detailed examples and calculations. The binomial option pricing model offers a unique alternative to Black-Scholes.