What does binomial tree mean?

binomial tree meaning in Law Dictionary

model familiar with show alternative values in different time periods at various rates. Just two costs are utilized in the model. The stark reality is the price may have more than two things.

binomial tree meaning in Business Dictionary

A model that displays the value of a choice during different cycles as well as various cost things for underlying asset. The primary restriction with this model is the fact that utilizes only two feasible price things the main asset during confirmed period. In reality, the price tag on a valuable asset just isn't limited by two things.