Some of the basic advantages of using the binomial ... The formula for this calculation is [max(P-K),0]. You can now see that if the probabilities are altered, the expected value of the underlying ...

While the formula for the expected value of a discrete variable may seem different from the formula for ... 5.2 Covariance of a Probability Distribution and Its Application in Finance (pp. 189-193) ...

In the financial world, the Black-Scholes and the binomial ... The formula for this calculation is [max(P-K),0]. You can now see that if the probabilities are altered, the expected value of ...