Binomial vs Black-Scholes: Where Prices Differ
Binomial vs Black-Scholes prices: the two models agree on European options and split on American ones. See how wide the early exercise gap gets and why.
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Binomial vs Black-Scholes prices: the two models agree on European options and split on American ones. See how wide the early exercise gap gets and why.
What makes a short option get assigned early: the dividend case, the interest case, the borrow case, and the margin call a short spread leg can produce.