computational efficiency
-
Binomial options pricing model
The ability to price derivatives accurately and efficiently is paramount. The binomial pricing model is one of the most widely used methods for option pricing, providing a structured approach to evaluating potential outcomes under various market conditions. With its powerful…
-
Approximations – Taylor series – Gordon Growth Model
In investment management, precision and efficiency are paramount when analysing how market variables impact stock prices. The Taylor series, a powerful mathematical tool, provides a robust framework for understanding price sensitivities and convexity effects. One application for the Taylor series…