Binomial tree is a method of financial derivatives pricing based on binomial distribution.
It simulates movement of the underlying stock in discrete periods of time.
Derivative payoff in each of the tree's nodes is multiplied by the probability of ending up in that node
in order to estimate expected value of the option.
The tutorial shows an example of calculating call option price using three period binomial tree.
As an exercise you can build in R option pricing function and submit yous solution to
Github

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