Multi Period Binomial Model


### [Recurrence relation](https://texonom.com/recurrence-relation-1c0b90005c30437fa61c5e049782e4be) 
$$S_{k\Delta t} := uS_{(k-1)\Delta t} \;\;if\;\;(p) \newlineS_{k\Delta t} := dS_{(k-1)\Delta t} \;\;if\;\;(1-p)$$
$\Delta t$  is unit period so
$$S_m = u^md^{k - m}S_0 \;\;if \;\; p^m(1-p)^{k-m}$$

### Multi Period Binomial Model Notion
|Title|
|:-:|
|[2-Period Binomial Model](https://texonom.com/2-period-binomial-model-f981fc6867694a1c9cf332d74423b22f)|
|[Draft Volatility Model](https://texonom.com/draft-volatility-model-c93928ebc731439091d8eb93bfe9143b)|

### n-Period Binomial Model
![](https://www.notion.so/image/https%3A%2F%2Fs3-us-west-2.amazonaws.com%2Fsecure.notion-static.com%2F2a5940c1-42ca-4ff2-8bac-430e9c2b09eb%2FUntitled.png?table=block&id=fc085405-3f0b-441e-ae7d-c2ccd34e29f0&cache=v2)







