4 ms·
Decision trees are also used in pricing stock options: http://www.investopedia.com/terms/l/lattice-model.asp http://www.investopedia.com/terms/l/lattice-model.a
by yawaramin 12y ago
Decision trees are also used in pricing stock options: http://www.investopedia.com/terms/l/lattice-model.asp http://www.investopedia.com/terms/l/lattice-model.asp
Effectively, a lattice model is a decision tree about the different factors affecting an option's value, and thus the resulting value.