TITLE:
The Equation of Real Option Value under Trinomial Tree Model
AUTHORS:
Changsheng Dou, Li Wang, Chenxi Zhu
KEYWORDS:
Trinomial Tree Model, Binomial Tree Model, Equation of Real Option Value
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.5 No.3,
March
13,
2017
ABSTRACT: Trinomial tree model is excelled than binomial tree model in precision and calculation from an example. Triple Tree pricing error is much smaller, the result is simpler. By careful analysis, we conclude the real option value under trinomial tree model.