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/sci/ - Science & Math

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9571034 No.9571034 [Reply] [Original]

I was considering posting this at /biz/, but those guys are not smart enough.
It is related to economy, so hoping there are some students of finance out there with a kind heart <3

I need some help. (obviously)
To price an option (or any derivative) in a binomial model is easy.
When the model is additive however, i could not find anything useful on the interwebz.
additive, meaning S goes up/down with an absolute number, not in percentage.

Anyone knows how to calculate the price of a derivative in an additive binomial model?