A binomial tree is a graphical representation of possible intrinsic values that an option may take at different nodes or time periods.

What Is the Difference Between the Binomial Distribution and the Multinomial Distribution? Simply put, a multinomial distribution has several possible discrete outcomes.

The number of jackpot winners in a lottery is a textbook example of a binomial distribution, a formula from basic probability theory. If we repeat some probabilistic process some number of times ...

The binomial distribution is a way to test the probability that a particular outcome will result in a particular number of trials when we know the underlying probability of an event. For example, the ...