10. Binomial Option Pricing I
            
          
            
          
            
          
            
          
            
          
            
          
        
      
        
          
          
            
          
            
          
            
          
            
          
            
          
            
          
        
      
        
          
          
            
          
            
          
            
          
            
          
            
          
            
          
        
      
        
          
          
            
          
            
          
            
          
            
          
            
          
            
          
        
      
        
          
          
            
          
            
          
            
          
            
          
        
      
        
          
          
            
          
            
          
            
          
            
          
            
          
        
      
        
          
          
            
          
            
          
            
          
            
          
            
          
        
      
        
          
          
            
          
            
          
            
          
            
          
            
          
            
          
            
          
            
          
            
          
        
      
        
          
          
            
          
            
          
            
          
            
          
        
      
        
          
          
            
          
            
          
        
      
        
          
          
            
          
            
          
        
      
        
          
          
            
          
            
          
            
          
            
          
            
          
            
          
        
      
        
          
          
            
          
            
          
        
      
    
    Errata:
Although I state the formula correctly, that the slope of the graphed line equals the ratio of the “rise” of Cu-Cd over the “run” of Su-Sd, in the formula I then wrote, I used u-d in the denominator.
