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Level 22 · ◆◆◆ · ~12 min

Binomial & Trinomial Trees

Lattices: discretize the tree, roll backwards, converge to BSM.

"A grid of ups and downs that prices anything — even American."

binomial CRR treeup/down factorsrisk-neutral probabilitybackward inductionAmerican on a tree
🚀 You're jumping ahead. This builds on The Black–Scholes–Merton Model — but play it now and you'll still earn full XP. If it feels steep, those make a gentler on-ramp.

A short lesson, then a quiz. ❤️×3 — a wrong answer costs a heart; finish with at least one left and the level is yours. Lose all three and you'll have to try again. Replay any time — XP and cleared levels are never lost.