Binomial Option Pricing Model (Risk Neutral Valuation Approach) | FRM Part 1

In this video, we take a look at the Binomial option pricing model using a simple solved example. This example helps us confirm the equivalence of three approaches: Perfect Hedge approach, Replicating portfolio approach and Risk Neutral valuation approach.

This video is Part 3 of 3 videos on the Binomial Option Pricing Model. The first part is available here:    • Binomial Option Pricing Model (Perfect Hed...  . For more preparation resources related to the FRM Part 1 exam, please visit the course page here: www.finRGB.com/courses/frm-part-1-online-course.