Recurrence relation SkΔt:=uS(k−1)Δt if (p)SkΔt:=dS(k−1)Δt if (1−p)S_{k\Delta t} := uS_{(k-1)\Delta t} \;\;if\;\;(p) \newline S_{k\Delta t} := dS_{(k-1)\Delta t} \;\;if\;\;(1-p)SkΔt:=uS(k−1)Δtif(p)SkΔt:=dS(k−1)Δtif(1−p)Δt\Delta tΔt is unit period soSm=umdk−mS0 if pm(1−p)k−mS_m = u^md^{k - m}S_0 \;\;if \;\; p^m(1-p)^{k-m}Sm=umdk−mS0ifpm(1−p)k−mMulti Period Binomial Model Notion2-Period Binomial ModelDraft Volatility Model n-Period Binomial Model
