1. how to show that the rate of convergence of binomial tree to black-scholes value is 1/n ?
2. how to show that the values of binomial tree approximation oscillate as n goes to n+1 and converge to value of black-scholes as n goes to infinity?
1. how to show that the rate of convergence of binomial tree to black-scholes value is 1/n ?
2. how to show that the values of binomial tree approximation oscillate as n goes to n+1 and converge to value of black-scholes as n goes to infinity?